A heritage-listed property at 62 Dauncey Street,  Kingscote, on the renowned Kangaroo Island, has been brought to market by Colliers Jack  Dascombe, Rhys Newman, and Jordan Schmidt.  

Constructed in 1922, the charming two-storey building of 409sqm* has been occupied by  longstanding and ASX-listed tenant ANZ since 1951. The property also includes a three-bedroom  residence on the first floor, providing a combined holding income of $73,416* per annum.  

Occupying a prominent 520sqm* corner site overlooking the ocean, the property is well-positioned  within the town centre and within walking distance of local dining, retail, and tourism amenities. 

"This asset presents an excellent commercial opportunity for investors and owner-occupiers, given  its strategic position in the heart of Kangaroo Island's retail and hospitality hub," said Rhys Newman,  Colliers' Associate Director of Investment Services.  

Initially built for the Union Bank of Australia, the 100+ year old property can accommodate various uses, including office, retail, hotel, consulting, residential, and tourist accommodation (STNC). 

Tourism is a primary economic driver for Kangaroo Island, generating $280 million of revenue  across the island's 110 local businesses. Global travel authority Lonely Planet has placed the island  in the top five must-visit regions for two years in a row. With 1 in 3 jobs related to tourism,  significant investment continues to be made in the island's hospitality services and infrastructure. 

Colliers’ Executive, Jack Dascombe, said, "Significant public and private investment continues to  enhance the island's infrastructure and tourism amenities, with over $166 million worth of  upcoming projects.” 

"Key improvements include the current construction of two ferries to increase passenger capacity  and travel frequency, the proposed Art Museum of Kangaroo Island, and the recently completed  five-star hotel Southern Ocean Lodge," Mr Dascombe explained. 

Colliers’ Head of Investment Services South Australia, Jordan Schmidt, said, "With the current  interest rate environment and the subsequently higher borrowing costs, investors are seeking  higher yielding commercial opportunities."

He added, "Regional properties typically trade at a softer  yield, meaning opportunities like 62 Dauncey Street offer investors a strong value proposition." 

CoreLogic's most recent examination of Australia's regional coastal suburbs found that 35% of these markets recorded housing values at record highs at the end of 2023. Kangaroo Island's largest town, Kingscote, is approximately a 30-minute flight from Adelaide Airport, and has been placed in the  nation's top 20 highest annual capital gains of regional coastal suburbs, achieving a 17.8% annual  growth. 

62 Dauncey Street, Kingscote, Kangaroo Island, is offered for sale by Expressions of Interest closing  Wednesday, 30 October 2024, at 3pm (ACDT). 

*approximate

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