Super Fund Snaps Up Renovator's Delight 05-05-17

CHRIS HERDE

A SECONDARY inner city office building in need of a makeover has sold to a Self Managed Super Fund after failing to find a tenant.

 

The vacant two-level building at 7 Mallon St, Bowen Hills, sold for $2.2 million after a being marketed originally for lease by Raine & Horne Commercial’s Alex McSweeney and Trent Bruce.

 

The property, which was occupied by Lady Gowrie Qld, was sold off-market to a SMSF connected to a construction company, which is currently undertaking an extensive refurbishment on the 458sqm building which has 20 car parks.

 

Mr McSweeney said it was a clear example of the current two-speed market.

 

“Costs associated with leasing versus purchasing are not adding up, and thus we’re seeing strong demand for purchase requirements through SMSFs,” he said.

 

The property is in the Bowen Hills Priority Development Area providing future development upside.

 

According to CoreLogic RP Data it last changed hands in 2004 for $1.02 million.

 

Mr Bruce said the property needed an extensive refurbishment which was not desirable for a new tenant.

 

“We had a number of parties express interest during the campaign from a buying point of view,” he said.

 

“If you have the confidence and capacity to purchase and occupy your own premises, the numbers are definitely looking far more attractive.”

 

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