The Precinct at Townsville Sold for $22 Million
The Precinct – a prominent dining and retail destination in northern Australia’s largest city of Townsville – has been sold by Ray White Commercial and Colliers International for $22 million in a joint marketing campaign.
Inspired by The James Street precinct at New Farm in inner Brisbane, The Precinct opened in 2009 and it has become a popular and proven trading success story.
Located 3.8km south of the Townsville CBD at 40-42 Stuart Drive and 18 Village Drive, Idalia, The Precinct was sold to a Victorian property syndicator by Stephen Kidd of Ray White Commercial (Qld) and Neville Smith of Colliers International on behalf of a Brisbane based developer who has extensive interests in Far North Queensland. It sold on an initial yield of just over 8.0 per cent.
Stephen Kidd said the Expressions of Interest marketing campaign for The Precinct attracted 87 enquiries and several formal offers from private investors and property syndicators along the eastern seaboard and Western Australia.
“The Precinct is a dining and retail destination in a single level building on an approximately 14,343 sqm site underwritten by an inspiring mix of 34 fresh and gourmet food, fast food and restaurant offerings,” he said.
“It’s estimated potential fully leased net income is approximately $1.85 million per annum and there is a weighted average lease expiry (WALE) of 3.64 years.
“Stage 1 of The Precinct opened in 2009 and with tenants now into their second option, its acceptance and tenancy mix has gone from strength to strength.”
Mr Smith said The Precinct’s anchored by a unique Fresh Food Hall offering which acts as the principal drawcard and has underwritten approximately 25 per cent of the property income over the past seven years.
“Strategically positioned beside a GP Super Clinic and opposite Townsville’s principal sporting fields, The Precinct has a strong lunch, evening and weekend trade,” he said.
“The Precinct is a recognised food destination in Townsville and forms an integral part of the master planned Fairfield Waters residential estate.
“The site benefits from exposure to a busy arterial road and a growing population base plus a vibrant local economy with approximately $1 billion of public funded projects currently underway and a further $3.3 billion of residential development spread across some 20 estates.”