Huge block of land for sale on fringe of CBD

Regarded as a ‘developer’s dream’, a huge block of land up for sale could supercharge Townsville’s housing supply or attract commercial ventures like a DFO. See where it is.

Townsville’s housing shortage could be tackled head-on by building apartment towers overlooking Cleveland Bay, as one of the potential uses for a massive block being sold on the doorstep of the CBD.

Historically known as the Railway Yards South Townsville, the South Yards Precinct is a sprawling 17.21 hectare site located at 24 Rooney St, South Townsville, opposite Queensland Country Bank Stadium.

In 2021, the mixed-use zoned land was purchased for $18.15 million by two of Australia’s top hospitality operators, Tasmanian businessman Errol Stewart and Chris Morris – whose portfolio of NQ venues includes The Ville Resort-Casino, Ardo, Pelorus Private Island, and the upcoming billion-dollar breakwater project.

With Townsville’s property market powering ahead, an influx of 500 defence personnel expected over the next five years, and $36 billion worth of infrastructure projects on the horizon, Mr Stewart said the time was right to test the market with the strategically-located block.

As he grew longer in the tooth, the 72-year-old said it would take too long to develop the block himself, preferring to instead use the freed up capital from the block’s sale to advance his other Tasmanian projects.

Tasmanian businessman Errol Stewart is looking forward to testing Townsville's property market with the sale of the South Yards Precinct. Picture: Supplied.

“My view with South Yards is that it would be a good commercial development, but it might be a residential development, or it might be a mixture of both,” Mr Stewart said.

“Or it might be that it remains as a South yard railway operation for manufacturing.

“(Wulguru Group) have been there for a good long time and they were pretty keen to stay there for a longer period of time (with a lease that expires in October 2027).”

Aerial view of the South Yards Precinct, which is up for sale with an expression of interest marketing campaign. Pictures: Supplied.

In addition to residential towers or sporting fields, he said the property could kickstart another commercial precinct with a large supermarket, Direct Factory Outlets (DFO), or big box retailers like Bunnings Warehouse, Spotlight, or Anaconda.

“We’re doing a couple of those now for a couple of the major guys down in Launceston and Hobart … and being so close to the CBD, it probably lends itself to that style of development,” he said.

Old steam locomotives in South Townsville on January 15, 1969. Picture Citylibraries.

Like the North Rail Yards project, which was regional Australia’s first build-to-rent development, Mr Stewart acknowledged that his site’s industrial rail use had created a soil contamination issue that would need to be addressed – dependent upon plans for its final use – but “it won’t stop most things”.

They drafted in Colliers Townsville to begin marketing the dynamic precinct development a couple of days ago, with the goal of enticing larger developing groups from the capital cities or from North Queensland, who might consider it a “strategic play”.

Colliers Townsville managing director Peter Wheeler is marketing the South Yards Precinct with Aaron Power.

Colliers Townsville Managing Director Peter Wheeler said this property represented a “one-of-a-kind opportunity”.

“It’s extremely rare to have a property of this size and strategic location on the fringe of the CBD become available in a city like Townsville,” Mr Wheeler said.

“This location is a developer’s dream – a block away from the CBD and right next to Queensland Country Bank Stadium and its growing list of major events. The South Yards Precinct will play a vital part in our city’s future.”

Colliers’ national sale via Expressions of Interest campaign closes on March 20.

For more information, visit www.colliers.com.au.

Aerial view of the South Yards Precinct, which is up for sale. Pictures: Supplied.

Features of the South Yards Precinct

• Irreplaceable 172,178 sqm landholding bordering the Townsville CBD.

• Leased to strong performing tenant Wulguru Group, one of the largest steel fabrication and engineering companies in northern Australia, until October 31, 2027.

• Tenant responsible for all outgoings including repairs and maintenance plus capital expenditure.

• The largest and most strategically located site of scale in Townsville and the greater North Queensland region.

Aerial view of the South Yards Precinct, which is up for sale. Pictures: Supplied.

• Located opposite the 25,000 seat, $300 million Queensland Country Bank Stadium.

• Mixed-use zoning allowing for a broad range of development outcomes (subject to council approval)

• Significant infrastructure currently on site – over 14 buildings, 19 cranes and over 5km of rail line all owned by the landlord.

• Townsville is the staging point for the $41.6 billion of infrastructure projects underway in North QLD.

• Estimated income of $1.15 million.

Originally published as Huge block of land for sale on fringe of CBD