Impressive tenant list makes tower attractive proposition
THE potential new owner of one of the city's most recognisable buildings will literally have a winning feeling if they decide to snap up the CBD landmark.
The Win Tower on the corner of Barolin and Quay Sts has hit the market for the first time in many years.
The five-storey building has been home to the likes of Win TV, Legal Aid and several solicitors for many years.
The corner of Barolin and Quay Sts has also been the seat of the sitting state member of parliament for Bundaberg through many election cycles and the lease has recently been extended for a further five years.
Originally built to house the Friendly Society Private Hospital administration, the Win Tower has always been tightly held and the office accommodation highly sought.
Marketing agent Grant Davies from CBD Realty says there will be strong interest in the commercial investment, with inquiries starting to come from southern metro areas.
"There is an amount of risk involved when investing in a regional area and so the return on investment needs to be higher to attract the buyers,” he said.
Mr Davies said the building ticked a lot of boxes for investors, with good strong tenants paying market rents all contributing to achieving a better-than-average return and a solid, flood-free building.
"The commercial investment market has become something investors are looking at again as they provide higher returns than residential property and prices are generally tied to the rental market,” he said.
"Southern markets can achieve capitalisation rate (cap rate) around six per cent for good solid investments but in a regional market the cap rate averages eight per cent to 8.5 per cent.
"The Win Tower is offered for sale at an eight per cent cap rate, which is right on the money.”