Townsville: City Lane and City Arcade sell for $45.25m

Two of Townsville’s leading retail and entertainment properties, City Lane and City Arcade, have sold for a mammoth amount in what has reinforced the strong appetite for regional investment.

Two of the city’s leading retail and entertainment properties, City Lane and City Arcade, have sold for more than $45m, according to commercial real estate company Jones Lang LaSalle.

Releasing news of the deals on social media, the company’s senior director, retail investments, Jacob Swan, says the properties sold for $45.25m with the price showing a fully leased yield of 6.61 per cent.

He says the assets boast excellent investment fundamentals including 100 per cent occupancy, a strong nine-year Weighted Average Lease Expiry and have more than 70 per cent of gross income underpinned by essential service tenants.

The City Lane bars and restaurants strip have been sold.

The City Arcade in Townsville's CBD has sold.

“The sale reinforces the strong appetite for regional investment opportunities that provide secure cash flow and are further supported by a stable economy,” Mr Swan says.

“We anticipate regional investment product will continue to attract strong interest from the market for the remainder of 2022.”

City Arcade and City Lane have shopfronts on to Flinders and Sturt St and feature tenants including Woolworths, James Cook University and food and beverage venues including Shaw & Co, Taphouse and Donna Bionda

The properties are among three lucrative North Queensland retail assets put to the market by prominent Queens­land developer Laurence Lancini earlier this year.

Originally published as Townsville: City Lane and City Arcade sell for $45.25m