Tasty Retail Asset Off the Menu

The Courier Mail - October 16 2015

Tasty Retail Asset Off the Menu

Chase Commercial’s Rod Brown helped sell Guzman Y Gomez’s flagship Queensland restaurant at The Emporium for $2.9 million A CENTRAL Queensland developer has donned its investment hat, staking a claim in Brisbane’s retail property sector to reduce the exposure of its capital to “mining risk”.

The Rockhampton-based Kele Property Group has paid $2.9 million for a fullyleased 285sq m strata-titled restaurant tenancy at the Emporium in Fortitude Valley. It is occupied by the local flagship outlet of Mexican food chain Guzman Y Gomez with the sale price reflecting a net yield of 8.1 per cent.

Chase Commercial’s Rod Brown and Michael Feltoe, who struck the deal, fielded more than 40 inquiries from investors stretching from Sydney to Cairns.

Five offers to purchase were put on the negotiating table.

“These retail investment assets don’t come up very often at the Emporium,” Mr Brown said.

“And this one – on a corner opposite the foyer of the Emporium Hotel – is in the best location with the most presence and exposure.”

Guzman Y Gomez is five years into a seven-year initial lease and also holds a sevenyear option.

The asset returns a rental income of $233,683 a year net plus GST and outgoings with 4 per cent annual increases.

Mr Brown said it was the buyer’s first foray into the Brisbane property investment market.

“It ticked all the boxes for the purchaser, who was looking to move some capital away from any mining risk and into a passive asset in a prime location,” he said.

Mr Feltoe said the deal reflected the strong demand for strategic income-producing assets, in the food retail sector.

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