STORY ACCREDITATION: The Border Mail
WRITTEN BY: David Johnston – MAY 13 2021 – 10:45AM
Albury Officeworks building sells for $10.95 million at auction
Albury’s Officeworks store has sold for a bumper price at auction.
The central Albury property on the corner of Smollett and Young streets sold for $10.95 million after being passed in at a 2010 auction for $5.2 million.ADVERTISING
The super result for an investor group including Albury-based members represents a yield of 4.79 per cent which is a record for a property of its type in regional Australia.
It broke a previous best Officeworks result in Hervey Bay, Queensland that sold in November last year for $6.25 million on a yield of 5.59 per cent.
The sale to a Melbourne buyer took place at a portfolio auction staged this week by agents Burgess Rawson with L.J. Colquhoun Dixon conjunctional agents.
“It exceeded our expectations,” agent Andrew Dixon said.
“There have been a number of Officeworks buildings sold over the years and this is certainly the highest sale price and firmest yield for a regional property.
“There would have been capital city Officeworks in capital cities sold for similar, but in regional Australia it has to be right up there.”
The site was formerly home to Phillips Marine before becoming a Sizzler restaurant until its closure in 1998.
After redevelopment, Officeworks opened a year later.
“It is a significant site in Albury and the property was keenly sought after,” Mr Dixon said.
There were 10 registered bidders for the property with a new six-year lease commenced in January this year.
The buyer and two underbidders were Melbourne-based investors who are extremely active in the Albury commercial market presently.
Meanwhile, a unit complex in Cowper Street, Albury also sold at the same auction for $2.45 million, 23 per cent or $450,000 above reserve.
It was sold to a Sydney investor after the property was sold about four years ago and the units refurbished.
Redevelopment plans for the site were rejected by Albury Council in 2017.
L.J. Colquhoun Dixon will auction the Albury Hobby Store building today.