Rockhampton is on the rebound as cashed-up property investors from near but mostly far spend up big to stake their claims in the resurgent central Queensland hub.
Multi million-dollar deals are being sealed aid an investment rush to secure income-producing assets as major projects ramp up throughout the region.
In one of the most recent transactions, a newly-built service station with a long-term lease in place to United Petroleum has sold for $4.75 million on a net yield of 6.47 per cent.
The property on a high exposure corner site ay 23 Albert St, Rockhampton, spans 2,018 sqm and was snapped up by a Melbourne-based private investor.
It was sold with a new 15-year lease plus two five-year options in place to Unite Petroleum that generates a net rental income of $304,289 a year.
The asset features a 186 sqm convenience retail store and eight bowsers under a 5,690 sqm canopy.
Glenn Conridge of Burgess Rawson, who was the selling agent with colleague Adam Thomas, said investors has refocused on Rockhampton and its surrounds as infrastructure and other projects ramp up in the region.
In the past few months, Mr Conridge has been involved in negotiating a number of investment deals in Rockhampton worth a total of $18.276 million.
The transactions have included income-producing assets at 128 East St ($3.375 million), 292 Alexandra St ($3.3 million), 6 Dooley St ($1.9 million), and 41 Johnson St (5 million).
Sydney and Melbourne-based investors were the buyers in all but one of the deals.
“Rockhampton is bouncing back with multi million-dollar sales, mostly to southern investors,” Mr Conridge said.
He said projects such as the Australia-Singapore Military Training Initiative were driving the renewed activity.
The $1 billion upgrade to the defence training area at Shoalwater Bay, about 100km northeast of Rockhampton, is estimated to create 219 new jobs and up to $15.9 million a year during development, and support up to 68 new jobs when completed with an ongoing economic benefit of up to $7.3 million a year.
“But more importantly, the aim is to have 8 per cent of the work done on the project performed by companies based in central Queensland, and aside from the direct jobs, there is expected to be a multiplier effect as the money is spent in the community.” Mr Conridge said.
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Written by Phil Bartsch, Brisbane Courier Mail