 Asset Class: | Office |
 Price: | $ 1255000 |
 Net Yield: | 6.34 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
Opportunity to purchase a newly renovated office in the heart of Wagga Wagga (less than 1km from CBD). A set and forget investment with minimal ongoing maintenance expected providing piece of mind for a new investor. <br><br><span style="color:rgb(51, 51, 51);">The office includes 385m² of net lettable area to support a range of small to medium businesses or government departments. It is a well maintained and modern structure that is professional and functional.</span><br><br><span style="color:rgb(51, 51, 51);">The property generates a passing gross income of ~$98,000 with the tenant responsible to pay water and sewer access and usage charges. Remaining outgoings payable by an investor total ~$19,000 and consist of council rates, insurance, land tax and property management fees to provide net income of ~$79,000. The fixed lease expires in January 2028 and includes annual CPI increases. It also includes a market rent review shoud the tenant choose to exercise its 1 x 3 year option to January 2031. The property has future upside potential valued at ~$121,000 (10%) as it is currently under rented by $20-$30/m².</span><br><br><span style="color:rgb(51, 51, 51);">The asset has been recently leased in February 2025 to NGH Pty Ltd, a leading national environment, planning and advisory consultancy. It was founded in 1992 and has offices in 11 locations on Australia's east coast and over 200 staff. Refer tenant profile below for a list of NGH's services.</span><br><br><span style="color:rgb(51, 51, 51);">Wagga Wagga is NSW's largest inland city servicing a regional population of over 200,000.</span>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
• Wagga Wagga is NSW's largest inland city providing goods and services to a regional population of over 200,000.<br><br>• Wagga Wagga is 375km south-west of Sydney, 375km north-east of Melbourne and 160km west of Canberra. Its excellent road, rail and air connections make it a strategic centre for interstate transport and the broader Riverina region.<br><br>• Wagga Wagga has a labour force of over 38,000 people and a diverse economy that mainly consists of health care and social assistance, construction, education and training and retail trade.<br><br>• Particular strengths of the employment base include public administration and safety, which includes the significant contributions by the Army Recruit Training Centre (ARTC) at Kapooka and the Royal Australian Air Force (RAAF) Base and Charles Sturt University. Export and import trade to and from the city is set to grow, facilitated by an excellent location on the nation’s main rail corridor and the proposed Riverina Intermodal Freight and Logistics Hub.
Additional Location Information File<span style="color:rgb(51, 51, 51);">The asset is leased to NGH Pty Ltd (Feb 2025), a leading national environment, planning and advisory consultancy. It was founded in 1992, currently has over 200 staff and has offices in 11 locations on Australia's east coast including:</span><br><span style="color:rgb(51, 51, 51);">• Sydney</span><br><span style="color:rgb(51, 51, 51);">• Melbourne</span><br><span style="color:rgb(51, 51, 51);">• Brisbane</span><br><span style="color:rgb(51, 51, 51);">• Canberra</span><br><span style="color:rgb(51, 51, 51);">• Gold Coast</span><br><span style="color:rgb(51, 51, 51);">• Newcastle</span><br><br><span style="color:rgb(51, 51, 51);">Some of the services NGH offer include:</span><br><span style="color:rgb(51, 51, 51);">• environmental impact assessments</span><br><span style="color:rgb(51, 51, 51);">• planning and approvals</span><br><span style="color:rgb(51, 51, 51);">• strategy and ESG advisory</span><br><span style="color:rgb(51, 51, 51);">• aboriginal and historic heritage advice</span><br><span style="color:rgb(51, 51, 51);">• aquatic and marine ecology, and</span><br><span style="color:rgb(51, 51, 51);">• project environmental management.</span><br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://nghconsulting.com.au/services/"><u>https://nghconsulting.com.au/services/</u></a><span style="color:rgb(51, 51, 51);"></span>
Initial Term:
Security:
Security Info:
Refer financial attachments for outgoings breakdown, tenancy schedule and return on equity projections.
Additional Financial Information FileInitial Term:
Security:
Security Info:
12 Fitzhardinge St, Wagga Wagga - 110m² - $259/m² 113 Fitzmaurice St, Wagga Wagga - 402m² - $303/m² 1/45 Fitzmaurice St, Wagga Wagga - 342m² - $263/m² 53 Fitzmaurice St, Wagga Wagga - 606m² - $364/m²
Offer To Purchase:
$
Initial Deposit:
$
Due Diligence:
days
Finance:
days
Settlement:
days
<span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Starting Net Yield</b></span><span style="color:rgb(51, 51, 51);">: 6.34% in year 1 or greater than 6.5% after-tax factoring depreciation deductions. Projected to increase to 7.42% in FY27-28 following a market rent review on lease expiry</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Net Year 1 Passive Cashflow</b></span><span style="color:rgb(51, 51, 51);">: ~$20,000 p.a. after mortgage costs (assumes 70% LVR, 6.75% interest rate)</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Rental Upside</b></span><span style="color:rgb(51, 51, 51);">: Currently under rented by $20-$30/m² presenting an opportunity to raise rents to market and realise a ~$120,000 equity uplift (10%) at the next market rent review in January 2028</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b> Modern Fit-Out</b></span><span style="color:rgb(51, 51, 51);">: Newly renovated office that is professional, functional and suitable for a range of businesses and government departments</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>A Clean Set and Forget Asset</b></span><span style="color:rgb(51, 51, 51);">: Minimal ongoing maintenance and capital expenditure required following recent renovation</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Rental Income</b></span><span style="color:rgb(51, 51, 51);">: ~$79,000 p.a. net of outgoings, land tax and property management costs with CPI annual increases ensuring long-term, stable returns</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Lease Term</b></span><span style="color:rgb(51, 51, 51);">: Tenant recently signed a new 3-year lease in February 2025 </span>(2 years, 7 months remaining) offering stability<br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Building Area</b></span><span style="color:rgb(51, 51, 51);">: 385m² (47.5% site coverage)</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Total Land Area</b></span><span style="color:rgb(51, 51, 51);">: 810m² with a value of $374,000 (30% of purchase price) underpinning value</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Car Spaces</b></span><span style="color:rgb(51, 51, 51);">: Room for 6 cars with a fully-fenced yard with a lock-up gate for added security</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Established Tenant</b></span><span style="color:rgb(51, 51, 51);">: NGH Pty Ltd has been in Business for 32 years and has over 200 staff with 11 offices on Australia's east coast</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Strategic Location</b></span><span style="color:rgb(51, 51, 51);">: Excellent convenience and exposure as it is less than 1km from the Wagga Wagga CBD</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Purchased Below Replacement Cost</b></span><span style="color:rgb(51, 51, 51);"> of ~$2,200,000 that means an investor can offer more affordable leasing rates/m² compared to developers</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Secure Location Supported by Government Capital Expenditure</b></span><span style="color:rgb(51, 51, 51);">: Wagga Wagga is home to Australia's Army Recruit Training Centre at Kapooka and Royal Australia Airforce Base. It is NSW's largest inland city servicing a regional population of over 200,000 and a key logistics hub situated on the in-land rail halfway between Sydney and Melbourne.</span><br><span style="color:rgb(51, 51, 51);">• </span><span style="color:rgb(51, 51, 51);"><b>Property Features</b></span><span style="color:rgb(51, 51, 51);">: Reverse cycle air conditioning, a security system, instantaneous gas hot water unit, a 13kW solar system and utilities include gas supply and three-phase power</span>
