CASHED-UP BUYER HOPS IN TO TAKE ON CARWASH
Hoppy’s Carwash at Southport attracted plenty of interest from buyers as it’s a business producing a good yield and in a handy location
GOLD Coast car king Brett Frizelle and rugby league great Chris Johns have cleaned up with the sale of their Southport carwash property to a Gold Coast investor for $4.55 million.
The pair sold the 92 Ferry Rd property, which hosts Hoppy’s
Carwash, through their entity Hoppy’s Property SP Pty Ltd. The sale was negotiated by Ray White Commercial Broadbeach’s Ryan Langham and Thomas Clark.
Mr Langham said yield-producing assets were attracting strong interest from investors with demand far outstripping supply.
The carwash, on a 1607sq m site, was sold offmarket with a 10-year lease in place and options through to 2050.
The sale reflects a sharp yield of 5.6 per cent based on annual income of $260,000.
“Inquiry rates are up 10 per cent from this time last year and we’re finding it challenging to meet the appetite from investors to acquire well-positioned assets,” Mr Langham said. “We believe we’ll continue to see an increase in buyer activity moving forward.”
Mr Langham said the buyer had recently sold a commercial property near Brisbane and was looking for an asset closer to home.
The Hoppy’s facility includes a state-of-the-art car wash as well as cafe with seated in-house and alfresco dining.
It was built in 2017 with Mr Frizelle as the tenant before he entered a partnership with Mr Johns in 2019 to buy the property from a company linked to Anthony Lester for $3.25 million.
Mr Frizelle has since left the Hoppy’s business and the property was sold with Mr Johns as rent guarantor.