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The first phase of a three-stage development in Queensland’s Moreton Bay has sold for $6.98 million, reflecting a yield of 5 per cent.
The site, which is pre-leased to Lead Childcare on a 15-year term with options and also includes a swim school, attracted more than 25 offers and 200-plus inquiries, indicating that interest in the development is strong.
The project, known as Rothwell Edge, is located on a high-traffic parcel at 560 Anzac Avenue, Rothwell, with a 60-metre frontage to the road, which counts more than 40,000 daily passing vehicles.
Ray White Commercial Queensland father-and-son team Stephen and Elliot Kidd brought the lot to market and were able to make the sale off an expressions of interest campaign.
“It’s not every day you can secure a well-leased asset on a long-term lease, in such a high profile location that already benefits from one additional stage of development completed and one more to commence shortly,” Stephen Kidd said.
Elliot Kidd added that childcare centres were currently “one of the hottest asset classes we are dealing with in the current market”.
“We have so many buyers looking to buy off-market centres at the moment — up and down the eastern sea-board with the importance of childcare centres being reinforced nationally during COVID — with childcare one of the first sectors to receive funding to ensure parents could remain in work,” he said
The purchaser of the lot was a Brisbane investor who reportedly has other investments in the asset class.
Investors and local businesses alike seem to have high hopes for the development of the area. The catchment group in which Rothwell Edge lies is expected to increase its population by at least 10,000 residents and more than 4,000 households by 2026, bringing with it $17 million in retail expenditure.
Stage two of Rothwell Edge is already in operation and trading strongly, incorporating a Pearl Energy fuel station and popular Greek food outlet The Yiros Shop with a drive-thru.
The site’s developer, Wentworth Group Properties, expects to break ground on stage three this year, with completion due in 2023, and leases for the retail and hospitality offerings in that precinct attracting considerable interest. Café 63, which boasts dozens of locations across Queensland, has already signed on to a space in the laneway-style dining area to be known as The Courtyard.
“The end product will provide a truly high quality mixed-use development where each stage is connected and interacts with each other,” Stephen Kidd remarked.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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