Numbers add up for investors

Like a moth to the flame, Townsville’s commercial property market continues to attract southern investors, with a recent auction seeing a Mount Louisa listing achieve the highest sale price.

Taking place earlier this month in Brisbane, Burgess Rawson’s Portfolio Auction event 170 was a resounding success, recording a jaw dropping $131.133m in sales, with all three Townsville commercial properties selling.

Burgess Rawson partner Neville Smith was delighted to see 450-456 Bayswater Rd’s fast food and convenience retail outlet, which is leased to United Petroleum, Red Rooster and Domino’s, sell for $7.8m, reaching the highest price achieved on the day.

The purchaser couldn’t resist a proven high performing convenience retail and drivethrough fast food centre, which boasted three national tenants on long-term leases and brought in an annual income exceeding $572,000.

The Caltex service station with a Night Owl at 77-79 Bowen Rd, Rosslea, went for $3.04m, while the soon-to-be rebranded from Puma to Caltex service station and industrial depot at Bolam_ St, Garbutt, also sold for $2.88lm.

Mr Smith said that investors were gravitating towards North Queensland because they were looking for locations underpinned by strong economics, and were also seizing on assets that were high performing in their own right, with long-term lease security.

“We’ve been able to provide some exceptional results for our owners … with some of the yields that we’re achieving,’ Mr Smith.

“Those yields that have traditionally been in South East There’s not an investor that we talk to that isn’t aware of what’s going on in this region. Neville Smith Queensland or New South Wales and Victoria, haven’t been able to be achieved into North Queensland, in my time in the industry, until now (with) good quality leased investments.’

He said that it was the long term prosperity of the North Queensland economy that was the biggest selling feature.

“A lot of these buyers are looking at stability in these geographical locations, and the blue chip assets.

“They’re the ones that are attracting the bids and attracting the tight yields,’ he said.

There’s not an investor that we talk to that isn’t aware of what’s going on in this region and they’re very supportive of what’s happening in our backyard.’

Townsville Bulletin – Leighton Smith