Coffee king snaps up gym

New Farm connection runs through Sunshine Coast property sale ahead of auction.

BRISBANE coffee king Phil Di Bella has raced ahead of the pack and bought a Sunshine Coast gym.

Mr Di Bella paid $2.1million prior to auction for the Healthworks gym at 5 Pangarinda Place, Mooloolaba, through Blue Commercial's Tony Pagano and CBRE's Rem Rafter.

RIGHT BLEND: Blue Commercial's Tony Pagano and CBRE's Rem Rafter on site at Pangarinda Place, Mooloolaba.

Mr Pagano said the transaction had a strong New Farm connection.

"The buyer grew up in New Farm, the vendors were in New Farm who I've known for a long time, and I'm a New Farm boy," he said.

The purpose-built two-level stand-alone 557sq m building was built 20 years ago and is on 926sq m of land overlooking the canal. It has 24 car parks.

Healthworks has a seven-year lease with a further five-year option available. The sale realised a yield of 8.2%.

Mr Pagano said yield was a major attraction.

"The buyer has a set criteria. It needs to be a 7% to 8% return, it needs a decent lease and development upside which is quite a sound strategy if you can find the properties," he said.

Mr Rafter said the property received 43 enquiries and there were two parties with offers prior to auction.

"Free-standing properties in good position with a reasonably good lease, albeit to a specialised gym, are highly sought-after," he said.

"The yield was high because it's a specialised gym and investors probably think it's a bit restrictive.''

Healthworks gym site sells for $2.1m 28-03-2017 16.15

VIEW GALLERY

MOOLOOLABA

5 Pangarinda Place

Features: Purpose-built, two-level, stand-alone 557sq m building on 926sq m. Tenanted

Price: Sold for $2.1million prior to auction

Agent: Rem Rafter of CBRE Sunshine Coast and Tony Pagano of Blue Commercial

Contact: Rem 0408 714 420, Tony 0408 721 665

Originally published as Coffee king snaps up gym