The deal, which was struck on behalf of a North Queensland based private development/investment group, reflected an initial yield of 7.42%.
CBRE’s Mr Rossi said the campaign had attracted a high level of interest, with over 75 enquiries from across Australia.
“Townsville’s diverse and growing economy was one of the key drivers of buyer interest, with Infrastructure Australia forecasting the city will become Australia’s largest regional centre outside of the Pilbara by 2031,” Mr Rossi said.
“This will be propelled by anticipated economic growth of 43%, including a boost in retail expenditure in the main trade area from $629 million to $1.1 billion per annum.”
Properties & Pathway’s managing director Cal Doggett said that while Townsville had faced a challenging period recently following the mining downturn, the group was confident the market was set for a resurgence.
He noted that the strong tenancy profile of Woolcock Street Supa Stores had been a major drawcard as had the property’s strategic location in Townsville’s main retail hub, with the household income in the main trade area being 13.7% greater than the Queensland average.
“It’s easy to get side-tracked by a lot of ‘noise’ when buying against trend but we looked past this and identified with Woolcock Street Supa Store because of the strong property fundamentals,” Mr Dogggett said.
“For retail assets you can’t go past access, exposure and signage and this property ticks all those boxes. The numbers also stacked up with a robust tenancy profile and a decent WALE where we can sit tight on some solid rental escalations over the short term while we work to unlock value towards the mid-term.”
Woolcock Street Supa Stores is situated on one of the busiest arterial roads in Townsville, with over 45,000 cars passing the site every day.
The 7,563sqm centre is 100% leased to four national tenants, including Fantastic Furniture, which accounts for 45% of the income.
Toyworld has been a tenant in the centre since 2004, with another long-standing tenant being Intersport, which recently expanded its footprint. The property is also the major Townsville outlet for the Salvation Army
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.