Yard Sale Rolling

A large development site opposite Townsville’s new stadium is again being actively marketed for sale with new lease arrangements in place and an investment market on the boil.

The South Yards are former inner-city railway workshops closed about five years ago and now leased by steel fabrication company Wulguru Group.

The 17.21ha holding was marketed last year, and said to have attracted good interest and offers, but is now back on the market through Burgess Rawson and Colliers Townsville.

Burgess Rawson Joint Head of Agency Andrew Havig said the proximity of the site to the Townsville CBD, beachfront and Townsville port made it an irreplaceable landholding.

“The South Yards is an important catalyst site for Townsville as a gateway city to the broader region which is the focus of $27 billion in new infrastructure projects,” Mr Havig said.

“The site presents a compelling investment opportunity with all the advantages of a long-term set and forget triple net lease to a strong performing tenant and opportunities to develop or reposition the property in the future.

“The mixed-use zoning allows for a broad range of development outcomes in a strategic inner-city location.

“Landowners will also inherit all built improvements to the site including more than 14 buildings, 19 cranes and over 5km of steel rail lines.”

Mr Havig said about 50 to 60 groups, predominantly from Melbourne, Sydney and Brisbane had lodged inquiries so far.

He said the proposition had changed from last year’s offering with the long-term tenant commitment and the revival in regional locations like Townsville through Covid-19.

The site is being marketed with a renewed six-year lease to 2027 showing income of $903,612 per year, increasing to more than $1 million next year. Colliers Townsville associate director Neville Smith said the market was starved for long-term leased investment product like this.

“In this case not only does it represent an investment play but there’s a long-term redevelopment play. There is no other site of this scale or proximity to the stadium and Palmer St dining precinct to rival this opportunity.”

Expressions of interest close on November 17.