Southern investor purchases large property leased by NQ Auto Group for $11m

Located at the gateway to Townsville’s CBD, a prominent automotive property with a long history in the city has sold for $11 million. See where.

Commercial East Coast Investments managing director Glenn Conridge and Burgess Rawson partner Neville Smith secured the sale of the automotive property at 515-593 Sturt St. Picture: Supplied.

A high-profile automotive asset prominently located at the gateway to Townsville’s CBD, home to a long-established business, has been snapped up by a southern investor for $11 million.

The property at 515-593 Sturt St is leased by the NQ Auto Group, which has been selling and servicing new and used vehicles in the Townsville and surrounding regions for more than 40 years, including the well-known brands Nissan, Renault, and Suzuki.

Sitting on 7590 sqm, spanning across seven individual titles, the property features a 2302 sqm state-of-the-art service centre, a large showroom, modern office spaces, a spare parts sales area, and extensive sales forecourt.

In 2022, the tenant completed a $2.1m refurbishment and rebuild to ensure the property remained modern and highly functional for years to come.

It offers excellent visibility and exposure to 15,555 cars passing daily, thanks to its 160m frontage to Sturt St, along with two other street frontages.

The purchased property at 515-593 Sturt St spans across seven individual titles. Picture: CoreLogic.

The sale of the property won’t affect the existing tenancy arrangement, where a lease will run through to August 2029, plus four additional five-year options extending to 2049.

Bringing in a net income of $774,785 per annum plus GST, the sale represented a yield of 7.04 per cent, offering the purchaser a steady long term income stream.

Commercial East Coast Investments managing director Glenn Conridge and Burgess Rawson partner Neville Smith secured the sale of the automotive property at 515-593 Sturt St. Picture: Supplied.

Burgess Rawson partner Neville Smith teamed up with Commercial East Coast Investments managing director Glenn Conridge to secure the sale for a southern investor, which marked their first entry into Townsville’s commercial property market.

Mr Smith said the local market continued to be the powerhouse of the north with many investors having no hesitation in investing in the city, particularly driven by the strong economic platform and diversity of the economy and expediential growth Townsville is experiencing.

“With the city’s ongoing infrastructure development and the population growth fuelling economic activity, we’re seeing an increasing appetite from investors looking for long-term, stable returns,” Mr Smith said.

“Townsville remains a solid choice for those seeking a secure investment with substantial potential for future growth when looking into regional locations.”

The purchased property at 515-593 Sturt St sits at the gateway of the Townsville CBD. Picture: CoreLogic.

Mr Conridge regarded the asset as an excellent example of a secure, high-yield investment with a strong tenant, a strategic location, and a robust lease structure.

This week Burgess Rawson launched SELECT Portfolio, a premium, curated collection of Australia’s most exceptional commercial investment opportunities, exclusively for sale via expressions of interest.

For more information, visit: www.burgessrawson.com.au.

Originally published as Southern investor purchases large property leased by NQ Auto Group for $11m