Division launched to hit up investors

WITH southern investors leading the charge to buy the city’s commercial property, residential and property management firm Raine & Horne Townsville has launched a commercial division to focus on the opportunities.

Led by Raine & Horne Townsville principal Steve Leaumont, the commercial team includes well known agent Peter Mccann.

Mr Leaumont said he was attracted to the opportunities being created in the sector.

“We had our Executive Chairman Angus Raine here in Townsville recently, and he commented that there are so many opportunities for commercial in Townsville. These opportunities are what I wanted to talk to him about, and that got the ball rolling,” Mr Leaumont said.

Mr Mccann has many years’ experience as a car dealer and commercial property agent in the city, while the agency will join Raine & Horne’s Queensland network of commercial offices in Brisbane and Mackay.

Mr Leaumont said he was extremely bullish about the prospects for commercial real estate in Townsville.

“It was very much at the bottom of the cycle for a long time. But activity has climbed rapidly over the last 18 months. This demand is driven by southern investors from Southeast Queensland, NSW and Victoria,” Mr Leaumont said.

“Out of area investors are discovering you can buy an affordable commercial property in north Queensland with a yield of 9 per cent whether it’s a tenanted retail, industrial or office asset.

“You can buy a lot more here for $1m than what you can buy in Sydney or Brisbane, and this is the appeal of Townsville’s commercial real estate.”

But he said stock was getting tighter, putting pressure on yields.

“Apart from southern investors, business owners such as GPS and other medical professionals are shifting to Townsville for lifestyle reasons and are snapping up vacant commercial properties,” Mr Leaumont said.