Queensland shopping centre sells for millions
A NINE-tenancy Burleigh Heads shopping centre has sold at auction to a Brisbane investor for $2.9 million.
The 5-7 Tallebudgera Creek Rd property was sold by EPI International Pty Ltd, linked to Theodor Eggerth and Gerlinde and Kurt Piccardi.
EPI had held the 2898sq m property, which is adjacent to a Caltex service station, since 1997.
Tenants include Subway, Fat Chicken and Silver Thai Restaurant.
The property, which has one vacancy, sold on a 6.9 per cent yield based on the net passing income.
The annual fully-leased net passing income of the property is $236,173 plus GST.
An auction last week in Brisbane attracted eight registered bidders with a starting bid of $1.7 million before the property was secured by the Brisbane investor.
Michael Feltoe, of Ray White Commercial Queensland Investment Sales, was the marketing agent.
Mr Feltoe said the five-week auction campaign attracted 115 inquiries.
"There was a clear split in interest from passive investors and buyers with experience of owning shopping centres," he said.
"The active investors were interested in acquiring it for the purposes of value add.
"The sellers had sweated the asset and there is room to refurbish and increase the rent."
Mr Feltoe said the property came to the market as the result of a dissolution of the owners' business partnership.
He said the property occupied a high-profile position with exposure to 18,500 cars daily.
In addition, the property has shared access to 40 car parks at the service station next door.