The Tugun Beach IGA sold under the hammer for $6.9 million with a 3.94 per cent yield, setting a new benchmark for IGA’s in Queensland.
The sub 4 percent fully-leased yield has surpassed any supermarket yield in Queensland, with the closest comparable being the Woolworths Metro at Burleigh Heads, which sold for 4.86 per cent in 2020.
Ray White Commercial Queensland agents Lachlan O’Keeffe and Michael Feltoe said it had been one of the most anticipated auctions in QLD, with 355 enquiries prior to auction.
“The property was a freestanding IGA supermarket underpinned by a brand new 15-year lease, with a compound pharmacy on a one-year lease, and two ATMs,” Mr O’Keeffe said.
The asset had a WALE of 12.89* years and was located on a 1,279sqm land parcel with code accessible zoning up to three storeys.
“Since the beginning of the COVID-19 pandemic supermarkets have been held in increasingly higher regard, with investors seeking out this asset class due to the industry’s strong historical performance and essential nature,” Mr Feltoe said.