A Queensland local outbid five other investors for a small shopping centre at Rainbow Beach, the smallest of two Fraser Island gateways.
The auction result – $4.43 million – reflected a 7.32 per cent fully let net yield.
With 949 square metres, the complex is anchored to IGA, which is on a lease expiring in 2027.
There are six specialty stores too, five which are leased, the agents say, to daily needs occupiers.
On 2369 sqm, the Rainbow Beach Shopping Centre also has 36 car parks.
Rainbow Beach Shopping Centre
At 48 Rainbow Beach Road, on the north west corner of Carlo, also with frontage to Kurrana Street, the shopping centre’s Weighted Average Lease Expiry is 3.56 years.
The IGA is tenanted to a multi-store operator who has traded there for 16 years, the agents said.
Leases across the board are net – with the tenants paying outgoings but not land tax, they added.
The asset also captures a large tourist catchment – more than 70,000 visitors a year (story continues below).
“Despite the recent economic volatility, the centre commanded strong interest,” Ray White Commercial’s Lachlan O’Keefe, who auctioned the property with Michael Feltoe, Paul Butler and David Brinkley, said.
“Most people who have been to Fraser Island would know this centre as the last inbound stop of the journey,” he added.
“Considering the regional location, we are pleasantly surprised with how well the centre was known by private investors all across Australia,” according to the executive.
Mr Buter said “although the centre did feel the impacts of the initial COVID shutdowns, it has performed exceptionally in the last 18 months with interstate demand higher than ever, with the IGA especially being a strong performer”.
Rainbow Beach is about a three hour drive north of Brisbane, between Sunshine Coast and Hervey Bay.
In May, we reported ISPT paid $30.5m for the Caloundra Village, south of Maroochydore, reflecting a 4.74pc yield.
Elsewhere on the Sunshine Coast, that fund manager also holds the Woolworths anchored Coolum Park – after a $32.5m outlay late last year – and Coolum Village, in which Coles is the biggest tenant.
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