Top end of town turns its investment strategy towards regional hot spots like Bendigo

THE Bendigo region continues to thrive, with the big boys well and truly in the game when it comes to commercial investment dollars.

All heads are turning to regional investments to diversify their portfolios away from city-based commercial investments to better-yielding regional opportunities.

And it’s no wonder – with the growth of regional centres like Geelong, Ballarat and Bendigo, investors are now looking at value for money and asset growth, and the future looks bright in this regional sector outperforming their city counterparts.

Colliers is on a roll in the regions, with another landmark sale in Bendigo seeing a prudent investor fork out $35 million-plus for 10 Atkins Street, North Bendigo, on behalf of Morrison & Co.

The sale follows a myriad of top-end assets changing hands via Colliers in the region, such as the former Nestle Plant in Tongala selling for about $10 million, 12–24 Mitchell Street that sold for over $5 million, and the Southern Cross Austereo up on the hill transacted for over $4 million, not to mention Invicta Estate East Bendigo where Colliers presold over $25 million of industrial lots, among many more transactions.

Colliers was delighted to announce this successful transaction following a highly competitive Expression of Interest campaign.

The fully-leased long WALE asset has been sold to an undisclosed social infrastructure investor, after having attracted a diversified profile of buyers.

Colliers’ state chief executive Rob Joyes said that the purpose-built residential healthcare complex, specifically designed to accommodate essential workers from Bendigo Hospital, attracted a diverse profile of buyers including private investors, listed residential funds, listed healthcare funds, listed social infrastructure funds, and high-profile syndicators.

“The asset comprises 120 well-maintained apartments across 11 three-storey buildings and is fully leased to Bendigo Health Care Group until March 2044,” Mr Joyes said.

“The secure lease term of 19.46 years was appealing for several bidding parties.”

As a State Government entity, Bendigo Health Care Group manages the primary public sector functions of Bendigo Hospital, providing the asset with a robust AA-rated State Government covenant and a stabilised Triple Net long-term income stream.

The passing yield for this transaction was 6.2 per cent, highlighting the property’s strong investment potential.

Mr Joyes said the property is strategically located just 500 metres from Bendigo Hospital – the main public hospital for Bendigo and the primary healthcare asset for the Lodden Mallee Region, which includes Mildura, Echuca, Swan Hill, Kyneton and Castlemaine.

Bendigo has evolved into a thriving regional city with a population that has just burst through the 130,000 mark.

The city boasts a blend of historical architecture and modern amenities, making it an attractive destination for both residents and visitors.

Travis Hurst, Colliers managing director for Ballarat, Geelong, and Bendigo, explained that Bendigo, Victoria’s third-largest key regional hub, continues to attract strong residential demand due to its appealing lifestyle, affordability compared to Melbourne, and well-developed infrastructure and strong regional economy

“The city’s diverse community includes a mix of first-time homebuyers, families and retirees, all drawn to the area for its balance of urban amenities and relaxed lifestyle options,” Mr Hurst said.

The Greater Bendigo region offers various cultural, recreational and educational opportunities, and the area’s strong economic base is supported by healthcare, education, manufacturing and tourism sectors.

With its strategic location, Bendigo continues to experience steady population growth and development.

Mr Hurst explained that Bendigo has several future developments planned to accommodate its growing population and enhance its infrastructure.

“The City of Greater Bendigo has adopted a Managed Growth Strategy to guide residential growth over the next 30 years,” he said. “This strategy aims to provide clear guidance on housing growth, focusing on directing more housing to areas close to existing services, community infrastructure, transport and job opportunities.”