Investment potential along Flemington Road shines as light rail progresses

Flemington Road is set for a new lease of life next year in its new role as part of the light rail corridor between the city and Gunghalin.

Local businesses are likely to become the beneficiaries of a new volume of foot traffic that will be able to conveniently access the new public transport along its 12 kilometre route.

And buyers are starting to take notice of the investment potential that may accrue from commercial properties with a front row position.

One such opportunity is a 130-square-metre retail tenancy, currently leased to the prominent “Cookies Cycles”, the only bicycle shop in Franklin. Located in the newly completed Aamira development, the property is close to one of the light rail stops with prime Flemington Road frontage and outstanding visibility.

The shop has a six-metre glass front and rear access. It shares common washroom facilities. There are two underground, remote-access car parks.

Burgess Rawson Canberra managing director, Guy Randell, says the property is an easily managed investment.

“This is a really good opportunity for an investor who wants to acquire a solid investment for a self-managed superannuation fund, property portfolio or similar,” Randell says.

“It’s got a solid tenant with a long lease until 2021 and it returns a very healthy seven per cent yield.”

The rent is $38,575 a year plus GST, and factored into the lease is an annual 3.5 per cent increase.

“Flemington Road is set for a new lease of life with the introduction of the light rail. I can foresee a high level of interest from potential investors and tenants,” Randell says.

“There’s anecdotal evidence that some early adopters are demonstrating their confidence in the light rail corridor and voting with their feet and taking early positions.”

The Burgess Rawson managing director says interest in the property has been received from Sydney.

“Canberra’s exciting infrastructure and other developments are bringing investors from beyond our borders, Randell says.

“They like what they’re seeing happening.”

He says light rail typically acts as a catalyst for inner urban transformation.

“It’s the ultimate form of public transport in that it encourages mixed use development along its routes where people can live, work and play,” Randell says.

“When you look at the length of the light rail corridor, you get a sense of the scale of opportunity. The transformation that is likely to occur hasn’t really been contemplated. It’s very exciting.”

Price guide: By expression of interest. Inspect: Contact agent, Guy Randell, Burgess Rawson Canberra, 0430 272 999.

Who’s in the market: Investors from as far aways as Sydney are eyeing off the Flemington Road property.