Brisbane CBD Retail Building Sold at Auction for $4.825 Million

A three level retail building in the vibrant Albert Street precinct in the Brisbane CBD under-pinned by the long term tenancy of Australasia’s largest pizza chain, ASX-listed Dominos, has been sold at auction by Ray White Commercial for $4.825 million.

The 488 sqm building at 105 Albert Street, Brisbane, was sold under the hammer at the Ray White Corporate auction in Brisbane by Ray White Commercial Queensland Director of Sales, John Dwyer, on behalf of private investors for a 4.9 per cent yield.

Mr Dwyer said there were 15 registered bidders at the Ray White Corporate auction rooms at 111 Eagle Street, Brisbane, and a highly competitive bidding environment for the property, which generates net rental income of approximately $238,000 per annum.

“This was the best auction I’ve ever been involved in, and I’ve been involved in many,” Mr Dwyer said.

“Bidding at the auction conducted by Ray White Queensland’s Chief Auctioneer Philip Parker started at $3 million and there were 33 bids before the property was sold under the hammer to a local investor or $4.825 million.”

Mr Dwyer said this auction success follows the recent off-market sale by Ray White Commercial Queensland of a 750 sqm retail building at 201 Elizabeth Street, Brisbane, for $5.65 million to a future owner-occupier.

“These sales represent a changing of the guard in the Brisbane CBD and a wakeup call to those who have been considering investing in retail property in the city centre,” he said.

Mr Dwyer said Dominos recently committed to a new 10 year lease at 105 Albert St.

“This building is ideally located in the highly sought after Albert Street precinct which is going through a significant transformation,” he said.

“The building is surrounded by a number of major hotel and residential projects that are currently under construction or are planned.

“The lower ground tenancy has been extensively upgraded to accommodate Domino’s, with two other speciality tenants occupying the balance of the building.

“Adjoining the building is a new ‘state of the art’ branch of the Commonwealth Bank.”