Historic Cairns landmark hits the market with 112 year history
For more than a century, it’s been one of Cairns’ most recognisable landmarks, and now, the fully leased Central Hotel building is on the market with price expectations above $8 million.
The heritage-listed building at 22 Spence Street occupies a 1702-square-metre corner site and provides 1919 square metres of lettable space to hospitality, retail and entertainment tenants, making it highly visible to passersby and traffic.
“It occupies an incredibly prominent corner position at a major intersection and remains a highly recognisable part of the Cairns streetscape,” Cushman & Wakefield’s Daniel Cullinane says.
“There aren’t many commercial properties where you can genuinely say the building has held that level of prominence within a regional city for more than a century.”
The property generates diversified income of almost $700,000 a year from 12 tenants, including The Source, Downtown Tattoo and TAO Karaoke & Function Rooms.
No individual tenant accounts for more than 21 per cent of the property’s income, providing a level of diversification that is likely to appeal to buyers seeking regional assets with secure cash flow.
Beyond its investment appeal, 22 Spence Street carries a distinctive place in Cairns’ history.
The building was constructed as the Central Hotel in 1914, and was regarded as one of the largest and best-appointed hotels in Far North Queensland. It originally contained 27 guest rooms and a dining room that could seat about 100 people. Back then, the hotel was visible to passengers arriving in Cairns aboard coastal steamers.
The property was developed by businessman and civic leader William John Munro, who also served as chairman of the Cairns Shire Council. Its construction coincided with a formative period in the city’s development, as the centre of commercial activity shifted towards the Lake and Spence Street precinct.
Cullinane says that opportunities to acquire comparable landmarks are relatively rare in regional Queensland, where prominent properties at major intersections or commercial gateways are typically tightly held.
“This is an iconic Cairns asset that occupies one of the city’s premier corner positions and has become an integral part of the CBD’s retail and hospitality landscape,” he says.
“The building offers investors a highly diversified income stream, while its substantial landholding, heritage character and central location provide long-term strategic value that is increasingly difficult to replicate.”
While the expressions-of-interest campaign has only just launched, Cullinane says his team expect interest from a broad range of domestic and international capital.
“Given the nature and quality of the offering, we expect the opportunity to resonate with a range of capital sources, including private investors, family offices and syndicator groups seeking well-positioned Australian commercial real estate,” he says.
The sale comes as regional commercial property continues to attract investors looking beyond capital-city markets for stronger income returns and relative value.
The vendor is seeking to capitalise on demand for high-quality regional investments, with Queensland’s infrastructure pipeline and preparations for the 2032 Olympic and Paralympic Games expected to provide an additional tailwind for investment and economic activity across the state.
Co-listing agent Daniel Wolman says Cairns is attracting attention because of its position as both the commercial centre of Far North Queensland and one of Australia’s leading tourism destinations.
“We’re seeing increasing demand for high-quality regional investments that combine diversified cash flow with genuine asset-management opportunities,” he says.
“Cairns continues to attract investors from across the country who recognise the strength of its underlying economy and the city’s role as Far North Queensland’s commercial and tourism capital.”
Expressions of interest close at 4pm AEST on September 9.
