Toowoomba CBD property could sell for more than $10m
A MASSIVE property on the edge of the Toowoomba CBD could sell for upwards of $10 million, after it was listed for sale through LJ Hooker.
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A MASSIVE property on the edge of the Toowoomba CBD could sell for upwards of $10 million, after it was listed for sale through LJ Hooker.
Interstate and international investors are expected to start circling the 4100 sqm piece of land on Hume St in East Toowoomba, which is located nearly directly across from the Toowoomba police station.
The centrepiece of the parcel is a multistorey office block, with 2150 sqm of gross floor area.
This is the first time the property has hit the market since it was built and opened by the current local owners 25 years ago.
LJ Hooker investment sales agent Daniel Cullinane said the property featured three street frontages, government tenants and an incredible 74 private car parks.
"This building is going to go the market with about $750,000 worth of income a year, so it's quite a significant asset for Toowoomba," he said.
"Out the back, you've got about 75 exclusive-use car parks over a 4106 sqm lot, so there is certainly some value-add here.
"We see a significant amount of development upside.
"On the back, there's an opportunity for a future office development, and the car park ratio is 1 per 26 sqm which is up there with the best in the region."
Key tenants include the Queensland Government and the Darling Downs West Moreton Primary Health Network.
Mr Cullinane said the property was highly desirable to investment funds because it met certain metrics around tenancy risk and average lease length.
"We work with a lot of property funds across Australia and overseas who are trying to place capital in areas where they can meet the minimum performance requirements," he said.
"It's going to have an weighted average lease expiry of about four years, which is fantastic for Toowoomba - that meets all the minimum requirements for property funds.
"There is little stock on the market that meets those requirements that those large investors want, so we're expecting a pretty significant uptake.
"Government tenants are the most stable tenants you can get, so that's one of the fundamental requirements.
"We're expecting a large amount of interest from those property funds from all around Australia and overseas."
Fellow agent Chris Stewart said renewed interest in the Toowoomba CBD was also fuelling buyer intrigue for investment properties.
"Toowoomba has been put on a national conversation with the federal projects we've been getting," he said.
"We're seeing a lot more investor interest in regional centres like this.
"Investors from Melbourne and Sydney can't get those returns down there so they're looking in strong regional areas, which Toowoomba has strong metrics underpinning it.
"The fact that the council has made a really conscious effort to invest infrastructure into the CBD gives people confidence to come back to the CBD."
The expressions of interest campaign closes on August 26.
For more information, call Daniel Cullinane on 0431 278 806 or Chris Stewart on 0451 948 001.
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