Sydney investor’s top deal
The property behind the popular Otto’s Market in Currajong has sold to a private Sydney investor for $8.7m as its former Melbourne owner signals it’s time to sell.
The Ray White Commercial Queensland agents who handled the deal, Lachlan O’keefe and Michael Feltoe, say the vendor, commercial property syndicator Peak Equities, is also putting its Precinct shopping centre in Idalia on the market for sale.
Mr O’keeffe said the Currajong sale showed a yield of 7.07 per cent.
“This was a fantastic opportunity to acquire a truly passive investment, underpinned by what I think is a revolutionary model that will shape the way independent supermarkets are offered in the future, so it does not surprise me in the slightest that it was snapped up prior to auction,” Mr O’keeffe said.
The Currajong property comprises 2551sq m of gross lettable area on a prominent 5340sq m site situated near the corner of Bayswater Rd and Illuka St.
The property has 103 onsite car parks with access from three streets.
The centre includes a mix of a supermarket, boutique food outlets, local craft businesses and Townsville’s only ice skating rink, all under a single head lease to Otto’s Market.
It showed fully leased net income of $615,501 plus GST per annum.
Mr Feltoe said the 12-year head lease — with an option out to 2036 — allowed the bespoke supermarket operator to take ownership of the centre and its success.
He said that Otto’s had be
come one of Townsville’s most popular shopping destinations and had proven their business model at Warrina.
“The site offers all three of the key fundamentals for a passive investment which I think, when put all together, has led to a fantastic yield in
the Townsville market,” Mr Feltoe said.
“The result is also a strong sign of belief in the Otto’s brand ahead of the upcoming sale of The Precinct Townsville.”
Mr O’keefe said the convenience-based retail precinct
in Idalia was set to be brought to market.
It is also anchored by an Otto’s Market with a mix of boutique shops as well as having a drive-through Red Rooster.
Peak Equities bought The Precinct in 2017 for $22m.