459-461 GOLDEN FOUR DRIVE, TUGUN QLD

Tugun Beach IGA

This transaction set a new benchmark (sub 4 per cent fully-leased yield) for IGA’s in Queensland. Moreover, this has surpassed all previous supermarket yields in the state, with the closest comparable being the Woolworths Metro at Burleigh Heads, which sold with a 4.86 per cent yield in 2020.
With 355 enquiries and 17 registered bidders, this was one of the most anticipated auctions in Queensland. The auction room was overcapacity, and as a result
some bidders were forced to stand in the hallways. The property was a freestanding (franchised) IGA supermarket underpinned by a brand new 15 year lease with a compound pharmacy on a one year lease and two ATMs. The asset had a WALE of 12.89 years and was located on a 1,279sqm land parcel with code accessible zoning up to three storeys.
Since the beginning of the COVID-19 pandemic supermarkets have been held in increasingly higher regard, with investors seeking out this asset class due to the industry’s strong historical performance and essential nature.

Sales analysis

ENQUIRIES: 355
REGISTERED BIDDERS: 17
ANCHOR TENANT:IGA (Franchisee)
SALE DATE 27th August 2021
SALE PRICE: $6,900,000
FULLY LEASED NET INCOME: $272,135* + GST pa
FULLY LEASED YIELD: 3.94%
WALE (BY INCOME): 12.89 years
BUILDING SALE RATE: $7,658/sqm
BUILDING AREA: 901 sqm*
VENDOR: QLD Private Investors
PURCHASER: QLD Private Investor
SALE METHOD: Auction