$5.75m deal as southern investor banks on surging Coast

A TWO-level office building anchored by a drive-through Westpac Bank is the latest Sunshine Coast acquisition for an interstate investor linked to a global market research firm.

It follows the demand for fully-leased commercial property on the Sunshine Coast, particularly by interstate investors.

 

Brendan Robins and Rem Rafter of CBRE on site at 3 Nicklin Way, Minyama.
Brendan Robins and Rem Rafter of CBRE on site at 3 Nicklin Way, Minyama.

The Melbourne-based family has swooped on the fully leased property at 3 Nicklin Way, Minyama in a $5.75million deal.

CBRE's Rem Rafter and Brendan Robins struck the deal on behalf of the vendor - an entity associated with Greg Gardner of project home group GJ Gardner.

It was sold on a yield of 7.23% with a weighted average lease expiry of 3.8 years.

Westpac accounts for almost 70% of the asset's net passing income of $416,048 a year.

"It's one of the original branches where they put in a drive-through and upstairs is their regional headquarters," Mr Rafter said.

He said there was a strong level of interest in the Minyama property, with 42 inquiries fielded resulting in five competitive offers.

"The buyer has been very active in the market over the last three to four years," Mr Rafter said.

"We are getting a lot of inquiries from Melbourne on a lot of these bigger investment properties and we put that down to the fact that yields are so low down there,"

3 Nicklin Way, Minyama.
3 Nicklin Way, Minyama.

Mr Rafter said although the market had "probably come off a little bit" over the past 12 months, there was still strong interest.

Mr Robins said the Minyama asset was on one of the most high profile and exposed commercial intersections on the Sunshine Coast with Nicklin Way carrying more than 50,000 vehicles a day.

He said it appealed because of its "high profile corner location, outstanding tenant covenant and a pretty good return".

The Nicklin Way asset is the most recent addition to its Sunshine Coast portfolio, which has been boosted by more than $40million worth of acquisitions in the past few years.

Among the family's other purchases are a multi-tenant asset along Noosa's Hastings Street retail strip ($21million), a three-level office building at Birtinya ($10.3million) and a development site in Maroochydore (about $4million).

The Minyama property sits on a high-profile corner position and has four tenants and 39 car parking spaces.

It has changed hands with a newly signed five-year lease plus options struck with Westpac.

The bank has been a long-standing tenant, occupying 282sq m on the ground floor and 576sq m on the first level since 2000.

 

MINYAMA

3 Nicklin Way

What: Fully-leased two-level office building

Features: High profile commercial building, 1250sq m nett lettable area, 70 % leased to Westpac, exposure to more than 50,000 vehicles a day, 39 car parking spaces 

Result: Sold for $5.75million

Agent: Rem Rafter and Brendan Robins at CBRE

Contact: Rem Rafter 0408 714 420, Brendan Robins 0402 159 588