‘Fantastic’ time for investors to be buying
IN A potential multi-million-dollar sale, the Fantastic Furniture building on Gladstone Road in Allenstown has sold.
The 6900 sq m site was listed for sale in October for $7.695 million through agents Knight Frank Rockhampton.
Principal commercial sales leasing consultant Neale Crow could not disclose the sale price however did say it was an offer of purchase.
He said there was interest from multiple southern investors and from some Central Queensland locals.
The winning buyer was an investor out of Sydney, Mr Crow said.
At the time of the sale, Mr Crow said "it was a fantastic passive investment opportunity where the investor would own the building and collect rent, getting a better return than if they were to park their money in a bank account".
The sale of the building doesn't mean any changes to the tenancy.
"It's just a new landlord, Fantastic Furniture are staying there and trading very well," Mr Crow said.
Mr Crow said parent company of Fantastic Furniture, Greenlit Brands, had made a commitment to stay for 10 years with options after that.
The strength of the tenant was part of the attraction for buyers, Mr Crow said.
Greenlit Brands owns Freedom Furniture, Fantastic Furniture, Snooze, OMF and Plush Sofas.
"They run across Australia and come from a strong background," he said.
With a sale secured in just a matter of months from listing, Mr Crow said he always anticipated it would move quickly.
"(I) thought it was always going to sell," he said,
Properties between the $5 -10 million mark are quite rare in the Rockhampton region and attractive to purchasers.
Another high priced building that sold recently Mr Crow noted was the Infrabuild building on Knight St in Park Avenue.
The sale price was not disclosed however it was listed at $6.95 million.
Mr Crow said the Rockhampton commercial real estate market was "starting to see positive signs".
He said people were sitting from the outside looking in and investors were keen.
They have noticed the $3 billion mooted for the region in infrastructure spend and seen it as a positive area to get back involved in.
"They see that as an attractor to the area," Mr Crow said.
"Some people internally are still finding it difficult."
Meanwhile, expressions of interest have opened for the Raine and Horne building at the corner of Bolsover and Denham St in Rockhampton CBD.
The mortgagee sale has been listed by Professionals under instruction of Grant Thomson.
It is 70 per cent tenanted by area and has value add/owner occupy opportunity with a diversified income stream.
The expressions of interest close on March 4.