Investors seeking security
More than $15 million worth of Queensland assets have gone under the hammer with investors seeking a safe haven to park their money.
Burgess Rawson’s Doug Doyle said the four Queensland assets sold in the agency’s last auction were backed by well-known tenants and long leases.
“Investors find a lot of security in their financial future by having a tenant who is recognisable in their building,” he said.
“These properties had tenant backed by names like the Infinity Pharmacy Group, Coles/Liquorland, KFC and Green Leaves Childcare.
“With a lot of people buying these assets replacing their income there’s security tied in with these names.”
The Queensland properties sold at auction were:
- Chapel Hill Green Leaves Childcare, 11-15 Moordale St, Chapel Hill – $7.66 million (7.71% yield)
Emerald KFC, 51-57 Hospital Rd, Emerald – $2.2 million (4.94% yield)
Taylors Hotel Mackay, cnr Wood and Alfred Streets, Mackay – $3.285 million (8.3% yield)
Burpengary Pharmacy, 115-117 Buckley Rd, Burpengary – $2.6 million (7.3% yield)
A local investor bought the Chapel Hill childcare centre while Sydney and Melbourne investors snapped up the other three assets.
Mr Doyle said after the slow-down around the Federal Election investors were back in force.
“Around an election people always either hold off or owners don’t want to sell because they’re not sure what their money will be doing,” he said.
“however, with interest rates the way they are, people’s money is just not working hard enough in the bank. So buying something with a 5% yield a couple of years ago would have sounded ridiculous but now it really makes a lot more sense.”
Written by Chris Herde, The Courier Mail