Rare chance to acquire a top-performing CBA
The chance to acquire a Commonwealth Bank-leased property in one of Australia’s regional strongholds will come with a bonus upstairs for the new owner when it goes to auction next month.
The longstanding Commonwealth Bank building at Bega in New South Wales is the latest top performing regional bank property to hit the market in 2020 and is expected to sell for north of $1.7 million.
In a bonus for investors, the CBD property comes with an additional revenue stream through a modern, two-bedroom apartment on the second level.
The property will be auctioned at Burgess Rawson’s Investment Portfolio Auction on Tuesday, December 8.
Located at 192-194 Carp Street, the property has been home to the Commonwealth Bank for many years, having undergone a complete renovation in 2010 and a further upgrade in 2018.
Secured on a renewed three-year lease, plus options to 2029, the 409 sqm site has 567 sqm of lettable area and almost 60 metres of frontage and exposure.
It returns $136,121 in net rent per annum, including a separate lease for the residential unit, with CBA paying all outgoings including land tax on the property, along with an additional property management fee up to 4%.
Burgess Rawson director Raoul Holderhead said the property was set to enjoy many more years of exceptional performance.
“It’s very safe in many ways, given Commonwealth Bank has spent a lot of money on the property, including a brand new air conditioning system that will be installed in the coming weeks” Mr Holderhead said.
“Bega is the capital of the Bega Valley region and it’s very likely the Commonwealth Bank will be in the area for a long time yet.”
Mr Holderhead said commercial assets leased as banks continue to draw a crowd when they are put to market.
“Banks continue to be good, solid, long-term investments based on their importance to the regions they service.”
The Commonwealth Bank also benefits from its location amongst other banks including ANZ and NAB, as well as KFC and the Sapphire Marketplace shopping centre, which is anchored by Woolworths and Dan Murphy’s.
The property will be sold at Burgess Rawson’s Investment Portfolio Auction in the Sydney Opera House’s Yallamundi Rooms from 11am AEDT on Tuesday, December 8.