Bunbury post office in $3.1m sale

Sydney investor and property developer Simon Strum has purchased a two-storey commercial building from the Australian Postal Commission for $3.1 million.

The 153-155 Victoria Street building, anchored by Australia Post, is 95 per cent occupied, with Telstra, QBE Insurance and Dixon Financial Group also tenants.

The property has 1,827 square metres of net lettable area, 1,788sqm of land, and a 2.5-year weighted average lease expiry.

Simon Strum is the owner of NSW Building Management, which is building several residential developments across NSW.

He describes himself as a property developer and project manager.

Ray White Commercial WA’s Michael Milne and Mick Caddy of Elders Bunbury brokered the deal for the asset, sold with a 7.25 per cent yield.

Mr Milne said the building had redevelopment potential, with zoning for up to nine storeys.

"Strong potential exists to upgrade and reposition this asset in the future to further increase the income stream,” he said.

Mr Caddy said the buyer identified value in Western Australia’s commercial property market.

“The rents are likely to have reversionary market upside when market review opportunities present,” he said.