An iconic Noosa shopping centre hits the market
An iconic retail complex in the heart of tourist mecca Noosa Heads will go under the hammer tomorrow and is expected to fetch more than $5.5 million.
The Oasis Centre, a 1518sqm allotment at 16 Sunshine Beach Road in Noosa Junction, is being auctioned by CBRE on behalf of Melbourne-based Martonsan Holdings, which last year sold Adairs on Bridge Road, Richmond to a Chinese investor for $14.81 million, well above the $11.6 million reserve, and is controlled by barrister Tony Kiel and Sandra Rush, the wife of former Supreme Court judge Jack Rush QC.
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Boasting 50 metres of frontage on Sunshine Beach Road, the “business centre”-zoned development spans a total floor area of 782sqm and includes a pair of two-level buildings and 15 onsite car parks.
The shopping centre has 10 stable tenancies and boasts 50m of street frontage on Noosa Junction’s main thoroughfare. Picture: realcommercial.com.au
It currently has 10 tenancies across three office and seven retail spaces, including well-known businesses Mermaid Swimwear and Black Pepper Café, and is close to the Noosa Fair Shopping Centre, as well as 400 council car parks.
It enjoys high pedestrian flow and vehicle traffic, and currently generates an annual income of $358,000.
Rorey James, the head of CBRE’s strip-retail investment team in Victoria, handled the Adairs campaign and is also handling the sale of the Oasis Centre. He told realcommercial.com.au that the property had garnered strong interest, with several Melbourne-based buyers flying to Queensland to bid at the on-site auction at 12.30pm tomorrow.
Price-wise, he says there’s interest “north of $5.5 million”.
“Having been owned by the same family for the past 30 years, this [property] is a rare opportunity, in a prime location, with 50 metres of street frontage and long-term stable tenants. This is not something you see sold every week,” he said, adding that would-be buyers have identified the chance to add value through potential rent increases and better management.
“You only have to compare to next-door, where the average rent is $55,000 per shop, while in the Oasis Centre it’s $40,000, to see the potential. On the face of it, the asset has more to give.”
CBRE’s Rorey James is handling the sale. He compares the location to Sorrento in Victoria. Picture: realcommercial.com.au
For those not across the Noosa market, James compares the locale to Ocean Beach Road in Sorrento. “For Melbourne buyers, it compares to that: a popular tourist spot, with seasonal tourism being a driver,” he said.
CBRE last weekend sold Sorrento Sportsgirl – on Ocean Beach Road – for $4.07 million, $1.07 million over reserve.
With the declining Australian dollar increasing the appeal of domestic travel to destinations like Noosa, the Queensland location is proving attractive to buyers, according to James.
“Noosa, of course, is a world-famous tourist destination, renowned for its beaches, national park, natural beauty, fine dining and its festivals,” he said.
According to Tourism Research Australia, the region attracted more than two million visitors in 2017, with a total spend of $909 million.
The Oasis Centre is for sale via public on-site auction Friday, March 15 at 12.30pm.
