OLE! INVESTOR SPENDS $4.1M ON NOBBY STRIP
There’s no sign of hip Nobby Beach losing its allure with a Melbourne investor spending big to secure a Gold Coast Hwy property in the beachside suburb
A MELBOURNE investor has emerged as the new owner of a prime retail strip in Nobby Beach, home to popular restaurant Mexicali.
Burton Place Investments Pty Ltd, linked to Francis Brancatisano, has bought the 2223 Gold Coast Hwy property for $4.1 million.
The seller was Bsct Holdings Pty Ltd, which purchased the fivetenancy property in 2006 for $2.6m.
The company is linked to directors Craig Headland and Shane Paradise, of Mermaid Beach, Anthony Wilson, of Miami, and Ronald Mellers, of Bunya. Tenants at the property include Mexicali restaurant, BWS, Okazu Sushi Restaurant and Nobby Beach Caravan Park.
Colliers International director of residential and special projects Geoff Lamb marketed the property.
He said the buyer was the underbidder at May’s auction, which resulted in the property being passed in at $3.6 million.
The buyer had lifted his offer after seeing the development upside for the property, which included plans to extend the deck upstairs.
“Mexicali is looking to do a substantial refurbishment to lift trade,” he said. “There is development approval to extend the deck area upstairs. The buyer sees some uplift there in terms of being able to increase the rentable space.”
Mr Lamb said a contract was signed in June, the month after the auction, with the deal settling in the first week of this month.
“Based on the sale price, the property sold on a yield of 5.8 per cent,” he said.
“The buyer was quite happy to buy at that yield, which he said would be unable to be achieved in Melbourne.”
The two-level property is situated on a 412/sq m block in the popular Nobby Beach retail area.
It returns net income of approximately $248,000, and has a WALE of 4.3 years.