JLL’s Jacob Swan said it was “very, very rare” for a property on Noosa hill to come up for sale.
No price guide has been given because of auction rules but Swan said it was a rare offering to the market and had the benefit of a long-term lease with the Endevour Group. The property is currently returning a net income of $692,515.
“The Noosa Reef Hotel sits on an expansive 5069sq m site at the top of the famous Noosa Hill, providing stunningly expansive views out over Noosa Main Beach and the North Shore. It’s a rare, outstanding and long-lease investment opportunity.”
He said the hotel lease had an initial expiry in 2029, with 4 x 10-year options, which would provide the incoming owner with strong income certainty and annual fixed growth.
“We are anticipating a very strong investor response to this opportunity, driven by the strength of the tenant covenant and further enhanced by the blue ribbon location,” Swan said.
“Investor sentiment for long-lease assets has never been stronger, fuelled by a positive interest rate environment and demand for essential service operations.
“The Noosa local economy has been one of the strongest in the country over the last 12 months, with record domestic tourism from both local within Queensland, and from the southern states,” Swan said.
JLL’s Sam Hatcher said the Noosa housing market had continually seen record results over this period, with southern buyers looking to secure their own slice of the Noosa hotspot.
“With freestanding fast food, fuel and supermarket assets now regularly commanding cap-rates in the mid to low 4 per cent range, there is clearly significant depth to this buyer pool, as private and institutional investors alike seek stable, long term returns,” said Mr Hatcher.
The auction will be held on April 22.Jump to next article