A high-profile property that has been occupied by a renowned north Queensland car dealership for years has been snapped up by a Sydney-based private investor.

They paid $11m for the seven-lot property at 515–593 Sturt St, spanning 7590 sqm with a 160m street frontage along Townsville’s Gateway to the CBD.

Commercial East Coast Investments’ Glenn Corridge, who brokered the deal with Neville Smith of Burgess Rawson, said it was a strategic purchase on behalf of a Gold Coast investor.

“They were attracted to the seven lots which are zoned for four storeys, it’s only 4km from the CBD and has a long-term tenant, NQ Auto Group,’ he said.

In 2022, NQ Auto completed a $2.2m refurbishment and rebuild, ensuring the property remains modern and highly functional for years to come.

They have been established for over 50 years with their lease term running until August 2029, plus four additional 10-year options extending to 2069.

The property generates a net income of $774,785 per annum (plus GST), the sale represented a yield of 7.04 per cent. The landlord-friendly net lease ensures the tenant is responsible for outgoings including land tax, further enhancing the financial appeal of the asset.

The property features a 2302 sqm state-of-the-art service centre, a large fully renovated showroom, modern office spaces, a spare parts sales area, and extensive sales forecourt.

It has exposure to 15,555 cars passing daily.

Mr Smith said the Townsville market continued to be the powerhouse of the north with many investors particularly driven by the strong economic platform, diversity of the economy and the city’s rapid growth.

“With the city’s ongoing infrastructure development and the population growth fuelling economic activity, we’re seeing an increasing appetite from investors looking for long-term, stable returns,’ he said. “Townsville remains a solid choice for those seeking a secure investment with substantial potential for future growth when looking into regional locations.’

The Courier Mail