Prime commercial properties to go under the hammer

Three highly desirable sites with good returns are drawing strong interstate interest

92 East St will go under the hammer in October. Picture: Christine McKee

THREE Rockhampton commercial properties, Kawana Siemens, a Rockhampton CBD retail outlet and a Park Avenue dual tenanted freehold site are set to sell under the hammer at Burgess Rawson's flagship October Portfolio Auction.

Sales director Glenn Conridge said the properties are in highly desirable locations with leasing terms that will attract significant interstate interest at auction.

"With each asset boasting prime Central Queensland locations and established top-notch tenants, the Rockhampton region has really cemented itself as a thriving commercial property market," Mr Conridge said.

"More broadly, we've seen some strong investor interest in coastal and regional properties, compared to those in CBD locations, and we are confident these Rockhampton properties will not be an exception."

The first site, a blue-chip investment at 292-296 Alexandra Street, is on the main thoroughfare from the Bruce Highway to Kawana and securely tenanted by $149billion multi-national industrial manufacturing giant Siemens AG on a new five-year lease to 2023, plus options extending to 2034.

It is ideally positioned on a 6,121sqm site and presents a net income of circa $265,000 pa + GST, as well as offering 3 per cent annual rent increases.

Blue chip investment at 292-296 Alexandra Street, Kawana is being auctioned in October. Picture: Alicia HarveyReal Property Phot

"This property underwent significant capital improvements last year to the value of $5million and represents a prime industrial investment, underpinned by a financially committed international public company tenant," Mr Conridge said.

The second property is a dual tenanted freehold site at 6 Dooley Street on the corner of Robison Street in Park Avenue and has a recently renewed five-year lease to two long-established tenants.

Comprising three as-new warehouse/office/showrooms with A-grade finishes and on-site parking for approximately 20 vehicles, the prime 2,691sqm corner site offers a net income of $172,200 pa + GST.

The third property, a CBD retail site at 92 East Street, is leased as Shop$mart, an established local family operator on a renewed seven-year lease to 2023 with options extending to 2033.

Having traded in Rockhampton and Emerald for more than 55 years, the tenants have six additional retail outlets throughout the region.

The impressive 1,290 sqm corner site is located within the heart of the city, boasts prime main street exposure neighbouring strong national retailers including Chemist Warehouse and Rivers, and returns a net income of $198,600 pa + GST alongside attractive 3 per cent annual rent increases.

"There has been a growing demand for quality investment properties in Queensland's north coast, particularly those tenanted by established and respected established tenants," Mr Conridge said.

Sydney's Doltone House will host the Rockhampton auctions on Tuesday, October 23 from 11:00am, while the Kawana property is set to sell under the hammer at Burgess Rawson's Flagship Auction in Melbourne the following day, at Crown Casino's River Room on Wednesday, October 24.

Originally published as Prime commercial properties to go under the hammer