Thanks for the feedback guys.

Chris the initial sales were from owner occupiers, not investors so it was probably structured a bit different to what you have assumed.  But we understand the cap rate is low, particularly when comparing with Sydney and Melbourne properties.  However, we (in the sticks) did not experience the huge capital increase in commercial the capital cities did and  have already had quite a drop in Comm prices from their peak.

On a more personal note, we're not overly concerned about the sale as most who have come back to us are looking for the 8%+ return, however, we're happy to sit and watch the interest rate movement in the coming months and hang out for the 7%-7.5% return as our companies can cover the interest in any case. 

I guess there is always a risk when having a building company as a tenant, however, we're quite a diversified company with separate design, building, window fabrication, steel and joinery "entities", so we're looking at the development as our hub in occupying 50%-75%, instead of being spread throughout the town.  The aim was always to own at least two.  The fourth factory is already under lease.

I.P. I'm very glad you can…   with regards to the handouts, in your experience (and from the discussion) is that also the case in regional areas.  The reason I ask, annecdotally speaking, we and other large towns in the area, have a much higher owner-occupied commercial sector than the capital cities, I'm not sure if that is the case for Ballarat, Bendigo etc, (maybe someone will be able to help) as the fitout contribution "issue" hasn't been as apparent to us or any of the local agents I've spoken to since your post.  Any further info would help

Regards

Tye