Property market finishes the year on a high with major sale

Published on: 01/12/2021

Townsville’s commercial property market has delivered another milestone in 2021 with the sale of the prominent South Yards Precinct for $18.15 million, achieving a yield of 4.98%. 

High profile property developers Chris Morris and Errol Stewart have joined forces to secure the site. 

Chris Morris said “We look forward to working with the Townsville community and further expand on the City’s tourism and hospitality facilities”. 

Co-agents Burgess Rawson and Colliers Townsville successfully sold the property on behalf of Honeycombes Property Group, drawing on exceptional local market knowledge with the reach of a national agency. Honeycombes had acquired the site in late 2017 with the intention of a masterplanned development, however, their current development interests in Southeast Queensland led them to market the site to realise their capital for injection into those projects. 

Recognising the significance of the opportunity, a dynamic Australia-wide marketing campaign was launched, leveraging national networks and comprehensive marketing. 

Colliers Associate Director Neville Smith said that interest was strong from the outset. 

“We received strong enquiry from all over the country, with nine offers submitted on the closing date,” he said. “In a market starved of investment availability, this asset certainly ticked all the boxes with secure income and major development upside.” 

Burgess Rawson Joint Head of Agency Queensland Andrew Havig said the team was confident of achieving a successful outcome. 

“South Yards is a really important site for Townville,” he said. “This is a significant landholding of 17 hectares on the CBD fringe which is unique in itself, let alone located directly opposite major infrastructure such as the new Queensland Country Bank Stadium. The quality and strength of enquiry certainly matched the magnitude of the property.” 

The sale is seen as a major step in Townsville’s ongoing CBD redevelopment. The site is earmarked to be re-imagined as a catalytic community precinct, with zoning in place for a mixed-use development featuring commercial development including convenience shops and specialty retailing, small scale office uses, professional services, and residential uses. 

Managing Director, Colliers Townsville Peter Wheeler said “this is a reminder that Townsville is very much on the map. Investors can see that exciting things are happening in North Queensland and they have confidence in the future of our region.” 

The property was purchased through a joint venture between Morris Group, owners of The Ville Resort-Casino, and well known Launceston developer Errol Stewart. This is an additional major investment in the region from Morris Group, who recently broke ground on the development of a five-star, $80 million hotel complex at the Breakwater precinct immediately adjoining The Ville Resort Casino. 


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