This article is from the Australian Property Journal archive
A MELBOURNE-based family has looked to the good prospects in Queensland’s growth suburb of Goodna, snapping up a bulky retail site for $4.15 million.
The 3,352sqm Repco and Cash Converters site at 179 Brisbane Road comprises a building area of 1,052sqm and 44 car spaces, and is fully leased to the national tenants on five-year terms until 2020, both with options to 2025.
It returns $317,112 per annum net, with the sale price reflecting a 7.6% yield.
The property enjoys high exposure to the Ipswich Motorway and is surrounded by a number of other national retailers, including Woolworths, McDonald’s, Caltex, Red Rooster and Hungry Jack’s.
Phil O’Dwyer and Richard Blanch of Colliers International sold the property after a separate campaign failed to achieve a result.
O’Dwyer said the purchaser is cognisant of the growth the south-east Queensland western corridor is experiencing and liked the blue chip tenants.
“There is a lot interest from interstate and offshore investors in Queensland retail property. Bulky centres are a rare commodity and are pursued aggressively,” he added.
Blanch said there were a number of challenges with attracting offers of an acceptable level for the vendor, particularly the stigma around the 2011 flood.
“Everyone is acutely aware of the effect the flood had on Goodna, but what a cursory glance doesn’t show is the faith both tenants have in the location,” he said. “The Goodna store is one of Cash Converters’ strongest performers and both tenants re-signed long term leases post the flood,”
“Few sites in Goodna offer the same sort of branding exposure to the Ipswich Motorway. This along with the tenants’ faith in the catchment, it gave the purchaser comfort to transact.” Blanch said.
Australian Property Journal
