Regional retail and commercial centres continue to prove popular with investors after a private Melbourne family acquired a high-exposure Sunshine Coast property at 50 Hastings Street in Noosa Heads’ tourist hub for $21 million on a net yield of 5.98 per cent.
The two-level property on a 781sq m site has six tenancies including the well-known Laguna Jacks bar and restaurant, a 7-Eleven, a Ben & Jerry’s Ice Creamery and Betty’s Burgers.
This is the third Sunshine Coast property in 12 months for the family who is buying for a family trust. The other two were offices and a mixed-use centre.
CBRE’s Rem Rafter and Brendan Robins negotiated the off-market sale for a local owner selling for the first time since the 1970s.
The Queensland coast is recovering after a massive supply of development and price declines brought about by the global financial crisis in 2008.
Mr Rafter said the sale confirmed the strengthening confidence on the coast, and its positive impact on the region’s property market.
In Queensland, another centre, the Innisfail Woolworths shopping centre, also sold for $10.3 million on a yield of 7.28 per cent.
A small syndicate from NSW bought the property through CBRE’s Michael Hedger, Peter Rossi and Danny Betros, who acted for a private Victorian investor. The 4101sq m property is anchored by a 3200 sq m Woolworths.
“The recent regional sales of Woolworths Chinchilla, IGA West Mackay and Coles Tannum Sands at competitive yields demonstrates the confidence the market holds for regionally based assets and that buyers are prepared to go up the risk curve for value opportunities,” Mr Hedger said.
