Investors eyeing Rocky for commercial turf
INVESTORS continue to look to Rockhampton fast food assets for commercial investments with the site of a local Subway store recently selling for $1,805,000 on a yield of 4.99%.
Listed in commercial agency Burgess Rawson's popular portfolio auction held regularly in Melbourne, the site sold with a secure 10-year lease in place from 2013, with 5 x 5 year options to 2038 and a rental return of $89,989 pa plus GST.
Situated at 3-5 Queen Elizabeth Dr the prime freehold 1120sq m site boasts excellent exposure with arterial road frontage and is a modern, recently refurbished store with full drive-thru and substantial on-site parking.
Selling agent Glenn Conridge of Burgess Rawson Queensland said the property was one of those unique offerings of a freehold investment which is securely leased on a 10-year plus five-year, plus five-year contract in a prominent main road position, also known as State Route 4.
"Tenant security is a major factor in the minds of investors and this Subway is a sure bet with the tenant to pay outgoings and 4% fixed annual increases - they don't come any better than this,” Mr Conridge said.
The sale comes as Herron Todd White Rockhampton released their November Month in Review which revealed a number of commercial property owners had started to put their properties on the market with hopes of taking advantage of increased investor interest.
One such Rockhampton property that has entered the commercial market is the site of a BP service station on the corner of Kent St and the Bruce Hwy.
The sale of the high profile highway location is bolstered by a 10-year lease to BP Australia with the option to extend to 2030.
HTW Rockhampton said investors had shown a strong preference for properties with strong tenant profiles and long lease terms.
They noted the recent investment sale of two properties with long-term leases in place.
The first was a freehold property leased to Red Rooster on Musgrave St for $1.6 million and the second a property tenanted by a local business with a near 10-year lease term under contract for a sale price reflecting an analysed yield of 7.7%.
HTW Rockhampton said there was interest from non-local investors as they were chasing comparatively higher yields than metropolitan areas.