Bendigo landmark site changes hands for first time in a century

Colliers are at the pointy end of commercial sales in regional Victoria, notching up a long list of significant transactions, with the Bendigo team having just finalised the sale of a landmark site that is changing hands for the first time in 100 years.

The iconic property that takes in 12-24 Mitchell Street, 1-3 and 7-9 Bath Lane, and 338-348 Hargreaves Street, totals 2,595sqm and has 13 fully leased tenancies.

It represents a significant investment opportunity in one of Victoria’s most dynamic regional centres.

The asset benefits from a diverse tenant mix, including national retailers such as Gazman and Sportspower and a range of local businesses providing various retail services.

The building has great historic credentials with the Gazman tenancy once being the former lobby of the old Plaza Theatre in Bendigo, and the gymnasium tenancy in Bath Lane previously being the main part of the former theatre.

There has been a growing trend of increased investment activity in regional Victoria as metropolitan investors seek higher returns and diversification beyond major urban areas. This diversity of this investment was key drawcard to buyers as it offers a stable and reliable income stream, making it a highly attractive investment.

Colliers managing director in Bendigo Travis Hurst said strong interest in this property was anticipated due to its diversified income profile and potential for long-term capital growth.

“Its strong yield and the opportunity for future rent enhancements make it a valuable addition to any investment portfolio.”

A Melbourne-based high-net-worth investor secured the high-profile retail opportunity with this successful sale reflecting a growing trend of increased investment in regional Victoria as investors seek higher returns and diversification beyond major urban areas.

Mr Hurst said investors were increasingly drawn to regional hubs such as Bendigo for their superior value and higher yields.

“The region’s steady population growth and competitive property prices continue to make it an attractive investment destination.”

“We are seeing an ever-increasing tide of confidence from Metropolitan-based investors who view regional Victorian real estate as a stable investment with long-term growth prospects.

“These investors are seeking a stronger return than Metropolitan assets generally offer but with the same level of stability and capital growth.

“Regional Victoria centres, such as Bendigo, have been seeing long-term steady growth in population for the past 15 years and are predicted to continue to do so well into the future.”

Colliers executive Adele Foott noted the campaign’s success, which attracted significant interest and received competitive offers, highlighting the strong demand for well-located, fully leased commercial properties.

“With more than 100 interested parties and multiple offers, the result demonstrates the confidence in regional investment opportunities,” she said.

“The property’s prime location is enhanced by its proximity to major landmarks, including the Bendigo & Adelaide Bank Headquarters, Bath Lane retail precinct, Alexandra Fountain, and Hargreaves Mall.”