Reading sells major retail, entertainment complex
Reading Group has sold the Cannon Park Entertainment Precinct at Thuringowa Central, in Townsville’s south west.
The cinema, ten pin bowling alley and mall with 490 car parks covering 3.8 hectares at 16 High Range Drive and 30 Hervey Range Road, found favour with a local private family office for $33.25 million – a 6.2 per cent net passing yield.
Five per cent of the c11,710 square metres area is vacant.
Most tenants are on rent reviews with fixed 2-4pc annual rises.
The deal comes two weeks since we reported the first arthouse cinema Reading ever rented, in Hobart, sold for $13.6m – a 9.3pc return.
In 2023 meanwhile, cinema owner Eddie Tamir committed the company’s bookstore division to three of five tenancies in Glenferrie Rd, Hawthorn – in Melbourne’s east.
Sold after tender campaign
Reading listed the Townsville properties via a public tender closing last July.
The cinema component – 2011 sqm – was offered with a 10 year leaseback.
Kingpin meanwhile, occupying 3500 sqm, is committed nine years.
Both parcels are zoned Major Centre, providing mixed-use development upside after that.
JLL’s Sam Hatcher and Jacob Swan were the agents.
“Reading Cinemas Townsville is the largest and only cinema in the south western corridor of Townsville dominating the large western catchment with little competition,” they said.
“The only other cinemas in Townsville are 8km and 12.5km away, both in the north-easterly direction,” according to the executives.
Ray White Commercial’s Peter Laoudikos introduced the buyer which was represented by Rethink Investing
“It was one call, one buyer, and the result speaks volumes about the strength of this asset,” he said.
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