A ground floor retail component of Mirvac’s Park Apartments development in Newstead was purchased by a Brisbane investor for $2.15 million, reflecting a 6.25 per cent yield.
This retail investment is located at 27 Cunningham St Newstead directly adjacent the $1.1b Gasworks Plaza. It comprises six tenancies under a single title, totalling 382sqm NLA and 432sqm of undercover alfresco seating area.
Hunter Higgins, James Marshall and Tony Huan Wang of Colliers International marketed the offering via an Expression of Interest campaign.
“The quality of the build, prime location, 3.7 year WALE and a net income of $134,447 per annum created very strong investor interest from both local and interstate parties, with the campaign attracting over 50 direct enquiries,” Mr Marshall said.
“Six tenancies were purchased in one line with the buyer recognising the value add opportunities to rework the tenancies through rental reversion, releasing and the potential to split the lots into separate strata units and sell off individually in the future.
“The property is located in a strong catchment area within the Gasworks precinct and surrounded by more than 7,000 apartments either built or currently under construction and easy walking distance to all forms of public transport including the City Cat ferry,” Mr Marshall said.
According to Mr Wang they are seeing a lot of demand for well-leased strata retail properties in the inner city, as they offer a solid passive investment and strong trading due to their prime location.
“As per the latest findings from our Retail Forecast & Research Report, we have seen yields head south over the last 24 months as a result of strengthening rents, which are driven by improved retail trade figures and limited supply of quality investment stock.
“With improving business conditions, strong population growth and increased tourist numbers the outlook for the retail market in Brisbane is positive,” Mr Wang said.