According to a media release from Colliers International the Far North Queensland commercial property market is turning the corner with a selection of fully tenanted, strategically located Port Douglas retail properties coming up for auction next month. 

Owned by a Queensland private entity, the four fully tenanted properties are estimated to fetch up to $6 million. 

Jay Beattie of Colliers International in Cairns is marketing the properties for sale via public auction on 24 September in Port Douglas, unless sold prior. Mr Beattie says the Port Douglas property market has been hard hit over the last five years but things are looking up.

“The far north Queensland market has gone through the bottom of the cycle, offering very limited investment opportunities. However we are now in a state of recovery, with blue chip investment properties coming back on the market and selling quickly with solid returns.”

“There have been a number of recent commercial sales that are producing yields of between 7 and 8 per cent. The Westpac Bank site on Macrossan Street sold at auction this month producing 7.45 per cent net return. Confidence is returning with many local tenants renewing their leases.”

According to Mr Beattie the four properties that are up for auction are ideally positioned in the heart of Port Douglas, and would suit one or multiple investors looking to expand their portfolio in this internationally renowned tourist location. 

“It has been over 10 years since we have seen a freestanding building go up for sale on the Wharf Street strip in the centre of Port Douglas. Holding prime position at 24 Wharf Street, this modernised Queenslander style commercial building accommodates two retailers and represents the keystone for development of this strategic block. 

“Four Mile Plaza, at 1 Barrier Street is a fully leased corner shopping strip with six separate tenancies being offered for sale in one line for the first time since construction in the late 1980s. The tenants are a mix of retail, food and offices and include, Courthouse Bottle Shop, Four Mile Seafood and Ray White.”

“Providing a relatively straightforward investment prospect, Shop 3 at 31 Macrossan Street offers 293sqm and is the home to LJ Hooker Port Douglas, who are secured by a lease through to October 2020 with a current net income of $90,786pa.”

“Suited to the first time investor or a tidy addition to an existing portfolio, Shop 5 at 32 Macrossan Street is a bit sized investment of 62m 22m2 occupied by established local retailer Coffee Works on a four year lease term.”

On top of this commercial property movement the growing confidence within the area may well see the great green fence that residents have had to endure for over a decade seems to have finally generated a rare opportunity for developers and investors.

Development is approved on a 2.067 hectare site neighbouring the world class Sheraton Mirage Port Douglas, Mirage Country Club and the award-winning QT Resort in Port Douglas earmarked for for a world class 5 star resort comprising 253 rooms and associated facilities. The site with its notorious green fence will accommodate the landmark approved scheme. 

The region is currently experiencing very solid growth off the back of movements in the Australian dollar and an increased interest from new and emerging markets, particularly China.

Neil Scanlan and Stacey Quaid of Colliers International are marketing the site via expressions of interest campaign on behalf of Oakstand Fund No 7 Pty Ltd.

Mr Scanlan, National Director of Hotel Transactions at Colliers International said there have been very few resort development opportunities undertaken in tropical North Queensland in the last decade. 

“This is a chance for developers and investors to stake their claim on a site of significant size and scope in this strengthening leisure market.”
According to Mr Quaid, Managing Director of Colliers International in Cairns, Port Douglas is at the forefront of a significant re-emergence of the international and domestic tourism markets. 

“This is evident by Fullshare Group’s recent announcement of their $200 million plan to upgrade the world renowned Sheraton Mirage Resort, as well as significant refurbishments of a number of resorts and accommodation properties in the region. 

“Port Douglas has long been famed for its star attraction with a mix of world dignitaries, movie stars as well as reclusive moguls often seeking to relax in this tropical hideaway. World renowned for its natural beauty as well as easy access the World Heritage Listed Daintree rainforest and Great Barrier Reef, there are few destinations in Australia that have such appeal,” said Mr Quaid.

The development site is located just 2.5 kilometres south of the retail heart of Port Douglas at 71-85 Port Douglas Road. The proposed resort has planning approval for six 3 storey buildings arranged with an enclosed courtyard, 136 basement car parking spaces, business centre, conference facilities, day spa, swimming pools, gym and food and beverage facilities (restaurant, lounge, bar, cafe and room service).

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Ed comment: But no green fence please!!!

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