Premium price for elite highway site
A SOUTH African syndicate has snapped up an Oxenford showroom for $2.6 million in an offmarket deal.
The 1850 sqm site, at 167 Old Pacific Highway, Oxenford, was sold by Caroline Terrace Pty Ltd, which acquired the property for $270,000 in 1995.
Plumbing and bathroom supplies business Tradelink occupies an 800 sqm showroom and warehouse on the site.
Tradelink has two years left on a five-year lease and pays $175,000 net annual rent.
Brisbane’s Ozzilat Property Investments acted for the buyer with Cushman & Wakefield’s Dave Kertesz and Jacob Zhou negotiating for the seller.
Mr Zhou said passing yield of 6.73 per cent indicated strong demand for tenanted assets.
“We were inundated with inquiries from investors,” Mr Zhou said.
“An investment with a national tenant in a high-profile location was always going to attract strong interest.”
Mr Kertesz said the deal, a 30-day cash settlement, shows the Gold Coast commercial property market continues to go from strength to strength.
“There is a lot of competition between buyers for properties and we are achieving premium prices on cash contracts,” he said.