CBD Gateway Townsville Asset Sells for $11 Million

Neville Smith of Burgess Rawson in conjunction with Glenn Conridge of Commercial East Coast Investments have transacted a high-profile automotive asset for $11 million in North Queensland

Located at 513-519 Sturt Street, the property spans 7,590 sqm across seven individual titles, benefitting from a prominent location with three street frontages. With a 160-metre frontage to Sturt Street—Townsville’s Gateway to the CBD—the site enjoys excellent visibility and exposure to 15,555 cars passing daily.

The asset also boasts substantial investment from the tenant, who completed a $2.1 million refurbishment and re-build in 2022, ensuring the property remains modern and highly functional for years to come.

The tenant, who has been established for over 50 years, is secured under a net lease with a term running through to August 2029, plus four additional five-year options extending to 2049.

With a net income of $774,785 per annum plus GST, the sale represented a yield of 7.04%, offering the Investor a steady long term income stream. The landlord-friendly net lease ensures the tenant is responsible for all outgoings, including land tax, further enhancing the financial appeal of the asset.

Featuring a 2,302sqm state-of-the-art service centre, a large fully renovated showroom, modern office spaces, a spare parts sales area, and extensive sales forecourt.

Mr Smith said the Townsville market continues 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 fueling economic activity, we’re seeing an increasing appetite from investors looking for long-term, stable returns.

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

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

Burgess Rawson this week launched the highly anticipated SELECT Portfolio — a premium EOI platform giving vendors and buyers direct access to some of Australia’s most sought-after commercial property opportunities.