Iconic and irreplaceable beachfront property in thriving Whitsundays tourist mecca hits market

4 June 2024

The iconic Pavilion Arcade located in the heart of tourism mecca Airlie Beach has hit the market with strong interest expected for this fully tenanted property.

Pavilion Arcade is uniquely positioned on 287 Shute Harbour Road and offers direct access to the stunning beachfront of Airlie Beach through an attractive open-air retail arcade with a mix of national franchises and unique local businesses, creating a vibrant retail hub.

Offered for sale exclusively by Colliers Queensland experts Hunter Higgins, Sam Polichronis, Peter Wheeler and Aaron Power, the 1,209 sqm property offers a diverse income structure and a dynamic mix of tenants.

Colliers Queensland National Director Investment Services Hunter Higgins said this was an opportunity to buy into a popular holiday destination in the heart of Airlie Beach, that offered a diverse income structure.

“Airlie Beach is recognized as the second fastest-growing town in Australia and has seen substantial economic growth, especially in the mining, health, and construction sectors, alongside a significant expansion in accommodation and hospitality jobs,” Hunter Higgins said.

“The building is 100 per cent tenanted with a total net income of $1,170,000, offering a strategic tenancy mix, anchored by national brands Boost Juice and Rip Curl as well as a number of long- standing popular local boutiques and restaurants.

“And the desirable District Centre Zoning, gives the asset a range of long term development potential subject to council approval.

“We are already receiving a lot of interest in the asset from investors looking for a stable revenue stream in a growing area,” Hunter Higgins added.

Colliers Townsville Managing Director Peter Wheeler said the Whitsundays was currently in the middle of a tourism boom with more holiday makers visiting than ever.

“The growth over the past three years reflects a trend of both an increase in the number of visitors, up 8.8 per cent over the three-years to 724,000, and a higher average spend per visitor, up 11.3 per cent over the three-year trend to $1,666,” Peter Wheeler said.

“And from an international visitor point of view, this year will see 151 cruise ships deliver more than 450,000 passengers onto the doorstep of Pavilion Arcade.

“Anchored by well known national franchises such as Rip Curl, Boost Juice, and Bright Eyes, the arcade benefits from the steady draw of established brands which attract consistent foot traffic.

“Complementing these are specialized local tenants like Paradisio Restaurant and Bar, Joa Sushi, Court and Spark Boutique, Airllywood Boutique, Aurealis Jewellery, and Aroma Stone, which cater to a wide range of consumer tastes and preferences,” Peter Wheeler added.

Colliers Queensland Executive Investment Services Sam Polichronis said this investment offered 1,209 sqm of irreplaceable park and beachfront, but was also located on a major arterial road, with over 26,000 cars passing daily.

“The prime location, combined with direct beach access, positions Pavilion Arcade as a unique retail and accommodation investment in one of Australia’s most popular holiday spots,” Sam Polichronis said.

“Having recently undergone extensive refurbishments totalling $5 million, with an additional $2 million to finalise upgrades completed in late 2019, enhancements include 81kW of solar, a completely new exterior with modern awnings and façade improvements, along with major internal renovations across retail spaces and additional lettable area developed by way of a restaurant, rooftop bar, café, and day spa tenancies all offering parkland, direct beach access and stunning ocean views.

“These improvements have not only restored Pavilion Arcade but have significantly enhanced its appeal, functionality, and sustainability, positioning it as a prime retail and leisure investment,” Sam Polichronis added.

The property is offered for sale via International Expressions of Interest closing Thursday 27th June 2024 at 4pm (AEST).