Top end of town investors consider regional hot spots

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 such as 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 are on a roll in the regions with another landmark sale in Bendigo seeing a prudent investor fork out more than $35 million for 10 Atkins Street, North Bendigo on behalf of Morrison & Co.

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

 

Colliers were delighted to announce this successful transaction following a 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 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.

“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 500m from Bendigo Hospital, the main public hospital for Bendigo and the primary healthcare asset for the Lodden Malle Region.

 

Bendigo has evolved into a thriving regional city that’s population has just bust through the 130,000 mark.

The town 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 said Bendigo continued 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 Bendigo had several future developments planned to accommodate its growing population and enhance its infrastructure.