SUPER SALE REAPS $5.5M
A PROMINENT freestanding Supercheap Auto store on one of Townsville’s main roads has sold for $5.5m on a 5.54 per cent yield to a private investor after an expressions of interest campaign through Kelly and Co Property.
The Charters Towers Rd property is a 1943sq m site with 48m of frontage and improvements, including a 929sq m flagship showroom and 23space carpark.
It was purpose-build for Supercheap Auto in 2001 and underwent significant tenantfunded internal and external renovations last year.
Kelly and Co Property selling agent Sarah Broad said the property attracted strong interest due to the lease covenant, location and size of the property.
“Supercheap Auto tenanted investments are tightly held and with this one being the only freestanding store in the Townsville area, we had a high level of inquiry from local and interstate investors,” Ms Broad said.
“Last year Supercheap Auto completed major internal and external renovations including upgrading the carpark area showcasing their commitment to this location.”
Ms Broad said the yield was firm for the Townsville commercial property market but demonstrated the demand for Asx-listed auto retailers.
“Asx-listed auto retail investments continue to perform well. Investors see them as solid set-and-forget investments and from a retail perspective they have continued to trade strongly even during the pandemic,” Ms Broad said.
“Head leases to Asx-listed companies are always a huge drawcard for investors and with many auto retailers being large in size and scale and in highly visible main road locations, like this Supercheap
Auto, many see them as trophy investments in their portfolio.
“Further evidence of this was the sale of a freestanding Autobarn on the Dawson
Highway in Gladstone earlier this year for $2,315,000 on a similar yield of 5.73 per cent. Both investments have leases through to 2024 plus options.”
The Hermit Park property is leased until 2024 with options to 2029 and returns a net income of $305,000 per annum plus GST.