Townsville mall delivers windfall for Oz Prop
Oz Prop Capital has divested the Mountain View Marketplace at Kirwan, in Townsville’s south west, for $7.75 million.
The off-market deal with a Victorian investor represents a 6.9 per cent yield.
It also reflects an impressive capital gain for the vendor, a specialist real estate investor, which paid $4.8m in 2016.
“Oz Property recognised the opportunity to sell during a time where some of the lowest yields were have ever seen are being achieved for regional Queensland supermarkets,’ the group’s director, Michael Parker, said.
“We believed that now was the perfect opportunity to capitalise on our work repositioning the centre and to execute our exit strategy”.
Buyer inspected via Facetime
With a Supa IGA and 11 specialty stores, Mountain View Marketplace failed to sell following a public campaign launched in early 2020, soon before the national lockdown.
Ray White Commercial Queensland’s Michael Feltoe and Lachlan O’Keefe later introduced the purchaser, who was instead seeking a metropolitan IGA backed investment.
The Kirwan asset was inspected via Facetime.
“There has been a significant uptick in demand from investors to secure established shopping centres in regional Queensland, especially since COVID-19 shone a light on how resiliently these regional cities have performed,’ Mr Feltoe said.
Mr O’Keefe added the buyer of Mountain View was attracted to the long-standing anchor tenant, and the longer-term development upside.
In Townsville’s city centre, last year, Aviator Capital paid $17.05m for a supermarket-converted-office at 71 Stanley St.
In 2019 mining magnate and politician Clive Palmer outlaid $780,000 for the small, historic Queensland building, overlooking Ross Creek.
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