27/01/2012 - Investment on the rise as inner-city Bowen Hills develops new look
A private syndicate has ramped up its investment portfolio, buying two strata units in Bowen Hills.
The syndicate paid $1.32 million for units 9 and 10 on the ground floor at 34 Campbell St.
Raine & Horne Commercial’s Trent Bruce, who struck the deal with Alex McSweeney, said the units were occupied by Music Lab, which has three years left on a lease with a six year option.
But despite offering a solid tenant, the units comprising a 116sqm warehouse and 384sqm of retail space, were on the market through other agents for more than a year.
One of the problems was that they were next to a soon-to-be-completed on-off ramp of the Airport Link.
“It wasn’t the easiest property to sell because of all the road works in front of it. That definitely deterred some buyers,” Mr Bruce said.
“However, it’s still in the Bowen Hills urban renewal precinct, very close to the RNA Showgrounds redevelopment and other development and it’s only 5km from the CBD.
“Actually, it’s a fundamental investment strategy for long term growth and security and the deal was struck at about a 11 per cent net yield.”
Units 9 and 10 last changed hands in 2003 for $1.08 million. Units 11 and 12 on level B recently sold for $820,000.
Mr Bruce said Music Lab was a ‘destination business’ largely unaffected by the roadworks.
“Actually, the ramp will increase the traffic flow past their business and enhance their exposure,” he said.
Mr McSweeney said the buyers were excited about the growth of Bowen Hills.
“I know at the point of sale there were two other offers also being presented to the owner,” he said.
“This was because Bowen Hills is getting a facelift and all the redevelopment will bring in people and business.
“Anything that close to the City, that close to the hospital and transport is destined to be the next big thing in Brisbane.”