Flagstone asset flipped after three years

The medical centre earns about $400,000 per annum.

The China based family which snapped up a Brisbane growth corridor shopping centre and medical complex three years ago has flipped it for a near-25 per cent capital gain.

The retail component, Flagstone Markets, configured with 10 tenancies.

Including the Flagstone Markets, with 10 occupied tenancies, Flagstone Health Precinct and a recently completed 7-Eleven and Red Rooster complex – has collected $25.35 million reflecting a 5.4 per cent net passing yield.

Based on the market income (c$1,4m), this becomes 5.6pc.

Savills’ Peter Tyson and Michael Harcourt were the agents.

Major town planned

On 1.27 hectares at 8-12 Wild Mint Drive, also bound by Homestead and Hollows Rd, the asset previously traded for $20.48m, reflecting a 6.9pc yield.

At the time, construction of the medical centre was nearing completion; it was purchased subject to a 10 year head lease.

The retail component started trading in 2018 (story continues below).

Flagstone is set to accommodate 120,000 people within 40 years.

All up with 2957 sqm, Mr Tyson said nearly 90pc of income is derived from national chain retailers; BWS, Domino’s and Terry White Chemmart are amongst them.

Most rental agreements carry fixed annual rent rises of 2.5-4pc, he added.

The Weighted Average Lease Expiry is about 6.5 years.

There are also 127 car parks.

The property, which is trading to a local investor, is part of Peet’s 7188ha Flagstone estate, set to become Australia’s 20th biggest city upon completion in c2062 – with c120,000 people in 50,000 dwellings.

The region is about 50 kilometres south of Brisbane.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.