Hope and glory as sale nets $42.84m
HOPE Island Central neighbourhood retail and office centre has sold for reportedly the island’s biggest commercial property sale.
A Sydney investors syndicate paid $42.848 million in an offmarket transaction for the centre at the western entrance to Hope Island.
The sale represents a yield of 8 per cent.
The seller is a company linked to Melbourne car dealer Jack Torcaso and wife Maureen, who developed the property in two stages over a decade.
The latest stage, completed in April 2017, more than doubled the centre’s size.
Brad Duncalfe, of Ray White Commercial GC South, confirmed the sale and said it followed an approach by the syndicate of buyers.
“They liked the quality of the existing tenants and also the chance to boost the yield by leasing vacant space.
“Hope Island is very vibrant in development terms and, as the population grows, so does the demand for retail and commercial space as businesses try to cater for the surging numbers.”
The major tenant at Hope Island Central is Queensland Education, which occupies 3096sq m of the centre’s total net lettable area of 9460sq m.
Queensland Education, which is in a building completed as part of Hope Island Central’s second stage, is on a six-year lease with a similar option.
The other major tenant is childcare operator Hope Island Early Learning, which has 650sq m in a second building in stage two.
Hope Island Central, which has a major frontage to Saltwater Creek, has net income of $3.4 million.
The Torcasos developed the centre on a 2.05ha site at 340 Hope Island Rd, bought for $7.5 million from builder Fariborz Masroori in 2005.
Tenants include service retailers, restaurants, and commercial businesses. Residents of the adjoining Hope Island Resort have direct buggy access to the centre.
The Torcaso sale comes as work is under way on a Hope Island town centre that will be anchored by Woolworths and Aldi supermarkets.
It is being built by a company associated with Brisbane developer Lennon Lin on a 99 Broadwater Ave site bought for $14.3 million last year.