Commercial units in Ainslie attract strong interest

The first commercial units in Ainslie to be sold in more than a decade have attracted strong local and interstate investor interest.

A medical precinct at 19-21 Edgar Street, Ainslie, will be auctioned on Tuesday, June 28, through Colliers International, with an entry-level price point and ASX-listed tenant proving to be a drawcard for potential buyers.

Matthew Winter, investment services executive at Colliers International, said it is rare for commercial units to be sold in the Inner North neighbourhood, particularly where an opportunity exists to acquire a free-standing building.

“Commercial units at local shops are tightly held because owners recognise the investment attributes and long-term benefits,” Winter said.

“In this case, it is not only the location but the strength of the national tenant that is generating interest.”

The units are fully leased to ASX listed Healthscope Medical Centres Pty Ltd, operating as Ainslie Family Practice. It is a five-year lease, expiring in January 2020 with two further options.

Buyer feedback on price has been in the ballpark of $1.5 million, opening it up to mum-and-dad investors as well as large private buyers, Winter said.

Demand for standalone buildings in local centres was recently demonstrated by the interest and premium sale prices achieved for the ACTtab portfolio of properties in December.

“Recent residential projects such as Arte, C5, IQ and Malabar has led to a surge in immediate and forecast population growth in the Inner North and this has had a positive impact on commercial property prices,” Winter said.

“The appeal to own commercial property in these rapidly growing and gentrifying suburbs is going from strength to strength.”

Winter said the property is zoned CZ4 and the purchaser could consider alternative long-term uses for the site including residential, subject to further investigation and planning approval.

“At the moment the use is office and medical but you could potentially open that up and explore some other uses for it.”

The complex is a single-level strata building completed in 1990. It is on a 592 square metre corner site and comprises three adjoining medical units with a combined net lettable area of 219 square metres. The property is being offered for sale in one line.

It has parking at the rear of the building for eight vehicles.