Queensland convenience retail deal reflects yield softening
A modern convenience retail complex leased to two Collins Foods Ltd brands sold for $7.9 million – $60,000 less than the vendor paid three years ago.
Despite this, the result for the Hervey Bay investment – 161 Boat Harbour Drive, Urraween – reflects a low 4.47 per cent yield.
On 3392 square metres abutting Stockland Hervey Bay, a McDonald’s and Dan Murphy’s, it contains two buildings with a total 472 sqm.
One is occupied by KFC until 2031.
The other is tenanted to Pizza Hut for five years.
Upon both expiries, Collins Foods Ltd will be presented the first of two five year renewal options.
Colliers’ Mark Wollin and Harry Bui represented the vendor, GIA HOA Australia, which outlaid a price reflecting a 3.98pc return at a more buoyant time in the sector, with record low interest rates (story continues below).
The buyer is a Melbourne based private.
Elsewhere in Urraween recently, GreenFort and Gaw Capital, for a land lease division, paid $7.7m for a 5.7ha block at Back Beach Road, on the Bay Dve bend.
The local RSL was the vendor, offering it permit-ready for 132 dwellings.
Spotlight Retail Group is also behind a recently completed bulky goods retail centre at 200 Boat Harbour Dve, Pialba.
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