Interstate investor Cottons On to outlet’s potential
AN interstate investor has made their first fashionable foray into the Glitter Strip’s retail market, snapping up a prime Surfers Paradise outlet.
The unnamed investor paid $7 million for 3143 Surfers Paradise Blvd in a deal handled by Rudi Scutti of Raine and Horne Commercial Gold Coast.
The 523sq m site, which is occupied by a single-storey building with two retail spaces, was sold by Kastoria, linked to Surfers Paradise investors.
Kastoria paid $6.8 million for the site in 1995.
The property has two retail tenancies, of 301sq m and 219sq m.
Leases on the site are held by Cotton On and Sportsgirl respectively.
Cotton On had moved to a larger tenancy in Cavill Ave, however, another company in its corporate family, stationery outlet Typo, was placed in the store.
Mr Scutti said both tenants had been at the property long term and Sportsgirl had just renewed its lease.
“It was sold on a yield of about 6.9 per cent on net,” he said.
“It had been on the market for quite a while with the vendor chasing about $8 million and for a while there we did have another party interested in it.
“However, we managed to secure a deal, which will settle early next year and allows the vendors to collect extra income on the site for several more months, which helped the deal over the line.”
He said the new owner planned to hold the site as an investment, leasing tenancies out if they became vacant.
Mr Scutti said interest in the site came from local, interstate and Asian investors.
“It’s in a great position, right at the crossing point from Chevron Renaissance, with good signage and a strong presence,” he said.
“It has a strong history of solid trading for its tenants.”