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A private NSW investor has swooped in to claim one of Townsville’s hottest properties.
The award-winning Otto’s Market Warrina, located five kilometres from the north Queensland town’s central business district (CBD), has been acquired by an anonymous purchaser prior to auction at a 7.07 per cent yield for $8,700,000.
Operated under a single 12-year head lease to Otto’s Market — with an option to 2036 — the sale allows the bespoke supermarket operator to take ownership of the centre and its success.
According to the agents behind the sale, Otto’s Market is one of the region’s most populous shopping destinations, thanks in part to its vibrant shopping arcade and an ice rink onsite. The centre also houses 103 onsite car parks throughout the 5,340-square-metre site, which was touted as ensuring its customer base can enjoy its full range of services.
Lachlan O’Keeffe, who, along with Michael Feltoe from Ray White Commercial Queensland, was the main architect of the sale, said the property represented a fantastic opportunity to acquire a passive investment.
“Underpinned by what I think is a revolutionary model that will shape the way independent supermarkets are offered in the future, it does not surprise me in the slightest that it was snapped up prior to auction,” Mr O’Keeffe said.
His partner, Mr Feltoe, said Otto’s had proven their business model at Warrina, while adding his belief that “the site offers all three of the key fundamentals for passive investment, which I think, when put all together, has led to a fantastic yield in the Townsville market”.
The sale provides both agents with confidence in the Otto brand ahead of the sale of the south Townsville site, The Precinct, spearheaded by Otto’s Market, with the added bonus of a drive-through Red Rooster, amongst other services, which the pair are set to bring to market shortly.
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