 Asset Class: | Industrial |
 Price: | $ 3300000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Pre Market |
Situated in the thriving regional hub of Shepparton, this high-profile industrial asset presents an outstanding investment opportunity. Spanning <b>5,306 sqm</b>, the property boasts modern dual-building configurations currently leased to Gradian Hydrotech under a long, <b>secure five-year lease</b> with 3% fixed annual rent increases and tenant-covered outgoings (excluding land tax). This <b>set-and-forget investment</b> offers both strong, stable income and the potential for future growth in one of Victoria's fastest-expanding regions.<br><br>The dual-building layout, currently leased to a single tenant, also provides future flexibility, offering the option to accommodate one or two separate tenants if required. Located in an expanding industrial precinct, this versatile and well-maintained property is perfectly positioned to benefit from Shepparton’s robust regional growth and increasing demand for high-quality industrial spaces.
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Shepparton offers very good investment potential with its robust economic growth and strategic location. The industrial market is tightly held and shows very low vacancy. <br><br>Key highlights include:<br><br>🌟 Booming Regional Hub: Victoria's 5th largest regional city with a population projected to grow by 19.54% by 2036.<br><br>🚜 Economic Powerhouse: Anchored by agriculture and manufacturing industries, Shepparton supplies premium produce and is home to national brands like Furphy and Pental.<br><br>🚉 Exceptional Connectivity: A well-established arterial road and rail network places Shepparton just 2 hours from Melbourne, making it a key logistics hub.<br><br>🏭 Industrial Growth: Expanding industrial precincts with modern facilities offer strong rental yields and tenant stability.<br><br>🏡 Affordable Investment: Competitive pricing with the added benefit of a 50% regional stamp duty concession for commercial properties.<br><br>💡 Sustainability Upside: A great property for Rethink renewable energy initiatives, like solar roof leasing opportunities, boost income potential while lowering tenant expenses. Enquire for more info.<br><br>With its vibrant economy, infrastructure upgrades, and attractive incentives, Shepparton is a regional gem that delivers both stability and growth for savvy investors. 🌱💼
Additional Location Information File<b>Gradian Hydrotech</b> is likely to be a strong tenant for several reasons. As a subsidiary of the <b>Gradian Group</b>, which was established in 2010, the company benefits from being part of a diversified and experienced organization. The Gradian Group operates across key industries, including water management, agriculture, and construction, ensuring a solid operational foundation.<br><br>Gradian Hydrotech was launched in December 2020 to focus on water infrastructure solutions, a sector critical to industries such as agriculture, mining, and local councils. The company's specialization in manufacturing and supplying essential products like poly fittings and pump stations positions it well within an industry that serves ongoing infrastructure and development needs.<br><br>While the company is relatively new, the Gradian Group's history of growth is encouraging. Between FY21 and FY23, the group expanded from 34 employees and contractors to over 120 employees, demonstrating its ability to scale and adapt to market demands. Gradian Hydrotech has also established a strong presence in Shepparton, supporting its local economy and highlighting its commitment to regional development.<br><br>Reasons Gradian Hydrotech Could Be a Reliable Tenant<br><br><b>Industry Relevance</b>: Operating in water management, a vital and steady-demand sector, reduces the likelihood of business disruption.<br><br><b>Parent Company Support:</b> Backed by the Gradian Group, Gradian Hydrotech benefits from resources and expertise that enhance its operational resilience.<br><br><b>Growth Trajectory: </b>The group's expansion and investment in key infrastructure suggest stability and potential for sustained operations.<br><br><b>Regional Commitment:</b> The company’s focus on Shepparton and surrounding areas aligns with long-term regional development plans, which could support its business continuity.<br><br>While no tenant’s future can be guaranteed, the combination of Gradian Hydrotech’s sector focus, support from its parent company, and local presence suggests it has the potential to be a stable and reliable occupant.
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<b>Tenancy Details</b><br><br>• Tenant: Gradian Hydrotech<br><br>• Rent (gross): $206,000 p.a.<br>• Rent (Net): $200,470 p.a.<br><br>• Lease Term: Five (5) years (Till 2028)<br>• Commenced: 30 June 2023<br>• Rent Review: Fixed at 3% annually<br>• Market Review: At option<br>• Options: (5) + 5 + 5<br>• Security: Directors' guarantees and 2 months' security deposit<br>• Outgoings: Paid by Tenant (excluding land tax)<br><br>• Permitted Use: Manufacturing/logistics<br>
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Address | [Land] Building Area (sqm) | Rent $/sqm 23 Telford Drive, Shepparton | [5,306] 2,480 sqm | $81/sqm 2 Drummond Street, Shepparton | [5,057] 2,000 sqm | $77/sqm 5A Industrial Road, Shepparton | [1,592] 417 | $96/sqm 5-7 Glenn Street, Shepparton | [5,657] 3,335 sqm | $65/sqm 73 Old Dookie Road, Shepparton | [16,650] 5,786 sqm | $71/sqm 13 Future Court, Shepparton | [6,753] 3,715 sqm | $74/sqm 12 Telford Drive, Shepparton | [2,083] 637 | $86/sqm
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• <b>Eligible for 50% Stamp Duty Concession: Upfront saving of $97,250</b><br><br>• Purchase Price: $3,300,000<br>• Net Yield: 6%<br>• Net Rent: $200,470 ($206,000 gross)<br>• Rent Rate (on NLA) $81/sqm<br>• Purchase Rate (on NLA): $1,331 / sqm<br>• Asset Class: Industrial<br>• Composition of Asset: Dual modern industrial buildings with office, workshop, and warehouse<br>• Property Market Status: Pre Market<br>• Age of the Asset: Circa 2006<br>• Any Unapproved Structures on-site: Not that the agent is aware<br>• Owner's Reason for Selling: Bought business and freehold and is looking to only retain the business<br>• Are the Seller & Tenant Related Parties: Yes – Sale & Lease back<br>• How Long has the Current Tenant Been On-site: TBC<br>• Last Sold/Price: 2023 / $2,300,000 (In a deal when purchasing business + freehold)<br>• Vacancy: Tenanted – estimated re-letting period of 6 month if vacant<br>• Flood Zone: The planning report shows a LSIO (Land Subject to Inundation Overlay) – According to the agent it has never been flooded and the insurance is not effected by it.<br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">SRO's assessed unimproved land value (2024): $730,000</span></p></li></ul>________________________________________<br>Property Features<br>• Land Area: 5,306 sqm<br>• Building Area: 2,480 sqm<br>o Office: 150 sqm<br>o Workshop: 732 sqm<br>o Warehouse: 1,008 sqm<br>o Canopy: 325 sqm<br>o Rear Wash Bay: 125 sqm<br>• Car Spaces: Ample<br>• Frontage: High visibility<br>• Signage: Available<br>• Fit Out: Modern office facilities<br>• Lifts: No<br>• Roller Doors: Yes<br>• Zoning: Industrial 1 Zone (IN1Z)
