MILLION DOLLAR BABY: Shopping complex sells for big bucks
A Bundaberg shopping centre has been sold for a whopping $4.2 million.
The shopping precinct which houses Target as well as other local businesses and sits on Tantitha St in Bundy's CBD has been purchased by a Sydney syndicator.
Sold by father and son Stephen and Elliot Kidd from the Ray White Commercial Queensland team, the pair said the sales campaign received a large amount of interest from investors across Australia.
"The campaign attracted 60 inquiries and the eventual purchaser was a Sydney syndicator who was attracted by the low rent, Target lease, substantial income and the capital upside that came with the opportunity," Stephen said.
"With Target renewing their lease for five years in 2019 and the asset producing a net income of $480,000 per annum, this was an incredibly attractive proposition for investors.
"The seller was a Queensland syndicator rationalising a substantial portfolio and finalising some estates."
Following the COVID-19 pandemic the real estate duo said they have witnessed more interest in tenanted investments across the state, particularly in regional Queensland and areas like Bundaberg.
"The Bundaberg region has 95,302 residents with a higher-than-average median age of 45 years," Elliott said.
"Property ownership is above average with over 66% of residents either fully owning or being in the process of paying off their mortgage.
"This campaign certainly highlighted investor and institutional interest and an understanding that in regional areas, rents were more reflective of tenant turnovers and their capacity to pay, rather than metropolitan rents which reflected higher land costs but not necessarily higher sales performance."
The local shopping centre sold for $4.2 million, offered a net lettable area of 5388 sqm on a 5539 sqm site and included a weighted average lease expiry of 3.72 years.