Queensland ‘trophy asset’ poised for hot contest
A major office and retail block in the heart of the Townsville CBD is expected to drive a flurry of interest from investors when it comes to market early this month.
The 8895sqm Northtown Complex adjoins the targeted $136.6 million Townsville City Waterfront priority development area and also offers a 95m frontage to Townsville’s CBD Flinders Street Mall and parallel to Odgen Street.
Colliers International Townsville’s associate director of commercial and industrial Neville Smith says he expects the listing to be “hotly contested” because there is nothing else like it on the market.
“This regional trophy asset fronts the Townsville City Waterfront priority development area, meaning that the buyer will be investing in a precinct, and a city, targeted for accelerated development with a focus on economic growth,” Smith says.
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“The Townsville market is tightly held, so quality stock can be hard to find and when strong performing, well-located properties enter the market, they are hotly contested.”
The Townsville City Waterfront priority development area is a $136.6 million project targeting the waterfront area of Ross Creek, bordering Ogden Street and the CBD, where Northtown Complex is located.
The Northtown Complex features a significant retail component
Once complete, the development will include a sports and cultural centre, including a new $300 million stadium and entertainment complex, high-density residential apartments and retail and commercial facilities, all connected by 5.9km of boardwalks leading to The Strand.
Recent Townsville CBD sales have included Suncorp Tower at 61 Sturt Street, and Commonwealth Centre in Walker Street, which transacted at $1750 to $1900 per square metre.
The Townsville market is tightly held, so quality stock can be hard to find and when strong performing, well-located properties enter the market, they are hotly contested
“The Suncorp Tower sold for $9.6 million in 2014, is 3000 squares smaller and located further from the waterfront PDA site, so I anticipate buyers will be more aggressive in securing this prime site,” Smith says.
Northtown Complex, located at 280 Flinders Street Central, comprises a 2496sqm retail ground floor, 2642sqm retail mezzanine second floor, four storeys of commercial office space above and a secure basement car park for 90 cars.
About 30% of Northtown’s office space is currently vacant
It is currently occupied by a mixture of commercial and retail tenants, including Townsville City Council Library and BOQ.
Smith says the building had a 30% vacancy rate, with three levels of office space currently vacant. Almost all of the retail space is tenanted.
He says Northtown Complex was extensively refurbished internally in 2011, but the property could benefit from some cosmetic external work, although this was not significant and was not likely to deter investors.
Colliers International Townsville will market the property, which will be released onto the market early this month.
