Local investor snaps up a well known AMF Bowling alley for an 8 per cent yield
A LOCAL investor made the perfect strike, buying a bowling alley in Brisbane’s south east after an expressions of interest campaign which unearthed a flurry of interest
QLD News
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A LOCAL investor made the perfect strike, buying a bowling alley in Brisbane’s south east.
The purpose-built building, tenanted by AMF Bowling at 9 Currumbin Court, Capalaba, sold for $4.16 million after an expressions on interest campaign by JLL’s Andrew Havig and Elliott O’Shea.
Mr Havig said the investor was drawn to AMF’s long tenancy, the land rich holding and the 8 per cent yield.
“We had 65 inquiries from Queensland and interstate and four expressions of interest from private investors and syndicator groups,” he said.
“Many of the parties that inquired during this campaign represented first-time entrants into the Brisbane market, and have been drawn to a compelling risk-adjusted return proposition compared with southern markets.
“In the first week of the campaign we had it under contract to a syndicator but he ended up not completing and therefore we introduced other person who bought it.”
The property has a net lettable area of 2074sq m and is on a 7815sq m site with 121 at-grade car spaces. It was previously owned by a NSW syndicator.
Mr Havig said AMF Bowling, which has leased the property for more than 20 years, has a lease signed to March 2022 with options beyond.
“It was bought on the basis that AMF would struck around,” he said.
“It’s rare to get an 8 per cent yield on something like that but it’s tucked away in an industrial precinct and doesn’t have good exposure.
“On the other hand it's a destination asset and the AMF Bowling centre over the years has attracted a very strong following.”