Interstate investor serves up $1.6m for slice of CQ history
INTERSTATE investors have sunk their teeth into an iconic Rockhampton food outlet as an appetite grows for the region's commercial property market.
A Melbourne-based operator forked out $1.57 million for the Musgrave St building which has been the long-term home of Cranston Pies.
McArthur & Associates Property Consultants sold the slice of Rocky history with the long-standing tenant on a long lease at an impressive yield of 5.73 per cent.
Commercial agent, Robin McArthur, negotiated the sale of the property with the new metro buyers.
Sales director for another commercial property group, Glenn Conridge said the well-maintained asset presented an exceptional opportunity for the investor who had their eyes on the pies.
"Rockhampton has cemented itself as the administrative and commercial centre of Central Queensland, while currently supporting a growing residential population of over 100,000 people (greater Rockhampton region, including Livingstone Shire)," the sales director of Burgess Rawson said.
"With the investor interest in regional commercial property markets on the rise, the sale of this asset was certainly unsurprising."
Establishing in 1953, Mr Conridge credited the business's reputation as the "driving force" behind the purchase, saying it was a "rare gem" of commercial property.
This major sale comes off the back of Herron Todd White's April commercial property report stating conditions for retailers were starting to improve after a "relatively flat" period.
Positive changes to the retail landscape included Aldi's announcement for two Rockhampton stores, Silly Solly's discount store franchise rising from the ashes and Bunnings Warehouse making the move into the ex-Masters building in North Rockhampton.
With speculation Coles may be taking the hardware store's place on its former site on Yaamba Rd, Herron Todd White said the flow-on effects from these developments would take time.
Over its 64 years, Cranston Pies cemented itself as a beloved icon and dominant wholesaler to the Beef Capital providing delicious fast food with the addition of a drive-thru.
The prime 1,852sqm site boasted an impressive 20m street frontage and was ideally located alongside a major six- lane arterial road which serviced more than 20,000 vehicles daily.
Knight Frank principal Neale Crow said it was the attractive yield price which enticed interstate buyers to sniff out commercial properties in Central Queensland.
The property at 119 Musgrave St supported a renewed lease and attractive 3 per cent annual rent increase, dishing out $90,000pa to the metro owners.