Company snaps up Fantastic building for $7 million
The Fantastic Furniture building has been sold, a year after it last changed hands, to a company chaired by former Queensland premier Campbell Newman.
The property, 143 Gladstone Road, Allenstown, sold for $7 million on a 7.6 per cent yield to Arcana Capital through Burgess Rawson Queensland.
It last sold for $6.5 million in January 2020.
The 6,907 sqm site includes a 3,305 sqm high clearance showroom and 65 on-site car parks.
The property has a 10 year lease from 2019 with options to extend to 2044 and has a net income of $503,030 plus GST per annum.
The site was formerly Sam’s Warehouse before Fantastic Furniture opened in 2015. .
Burgess Rawson sales director Glenn Conridge said the property was a ‘set and forget’ investment thanks to the secure lease.
“This property is ideally located on the Bruce Highway in one of Rockhampton’s growth suburbs,” he said.
“With its sizeable land holding and well-presented showroom secured to Fantastic Furniture on a 10-year lease to 2029 plus options to 2044, this asset really is a ‘set and forget’ investment.
“Fantastic Furniture is also directly adjoining Rockhampton’s only ALDI supermarket, with shared access ensuring a steady stream of passing traffic.
“The Fantastic Furniture brand is a real success story and a major performer in the homewares space.”
Chairman of Arcana Capital Campbell Newman said the group saw strong growth and opportunity in Central Queensland.
Mr Newman was Premier from 2012 to 2015 and started the property investment company in 2015 with Dominic Condon.
Arcana bought the Puma Energy service station at 43 Queen Elizabeth Drive, Rockhampton for $4.75 million in 2018, also through Glenn Conridge.
“Our clients have, once again, been impressed by Rockhampton’s diverse and growing economy and its pivotal role in Central Queensland. It’s a great vote of confidence in the city and its future by investors from outside the region,” Mr Newman said.
Another major sale was the Beaumont Tiles building at 367 Yaamba Rd, Park Avenue.
The property went to auction with Ray White Commercial’s Michael Feltoe this month with a “knock out bid”.
The property received 69 inquires and had five registered bidders on the day.
It sold on a 6.89 per cent yield for $1.65 million.
“Interesting fact about this sale was the highest bid was with the end buyer at $1.45m then we paused the auction to seek instructions from the vendor,” Mr Feltoe said.
“Then after a few discussions we had between the seller and the buyer, the buyer did a $200,000 knock out bid up to $1.65m.
“No one else bid from there.”
Beaumont Tiles has occupied the building for 20 years and the current lease has one-year to run until June 2022.
The 1,127 sqm site with a 666 sqm building produces an income of $113,686 per annum.
The property has not sold since 1988 when it sold for $280,000.
“Taking into consideration the shorter lease term this asset received a very high level of inquiry, eventually achieving a sale price $110,000 over reserve,” Mr Feltoe said.
“Across the Eastern seaboard we are continuing to see reducing levels of retail investment stock available for sale.
“As such it is becoming very difficult to satisfy the pent-up investor demand for single tenanted retail investments leased to national retailers.”