PRIME SPOT: Bundy CBD building changes hands for $2.7m
The prominent Rivers building in the heart of Bundaberg’s main street sold for $2,700,000 at Burgess Rawson’s Portfolio Auction last month, returning a strong yield of 8.34 per cent for the interstate buyer.
Tenanted by Rivers, part of the ASX-listed Mosaic Brands boasting 1,350 stores nationwide, for more than 10 years, the extensive 1,650 sqm building sits on a 1,333 sqm parcel of land including a rare 26.6m frontage to Bourbong St.
According to Burgess Rawson Director, Glenn Conridge, investors had their eyes on the property due to the central location in Bundaberg’s commercial and retail hub, a secure lease and longstanding tenant all ensuring a reliable long-term ‘set and forget’ asset.
“The building was constructed originally for Woolworths as a city centre supermarket, which gives an idea of just how central the location is,” Mr Conridge said.
“Rivers has been in the same location for more than ten years and recently signed a five-year lease with options to 2028.
“In addition to the strong ASX listed tenant, the property is notable for its particularly wide frontage to the passing pedestrian traffic, a generous 26.6m which is kept in very good condition.
“The building also had a 310 sqm first floor.”
The Bourbong Street property returns a net income of $217,465 pa + GST and has rare 4 per cent annual rent increases.