As the Gold Coast gears up in anticipation of hosting the Commonwealth Games next April, the Merrimac Tavern and complex has sold on a strong yield to a local investor.
The lot at Merrilaine Cres, Merrimac, comprises the popular Merrimac Tavern, as well as Counter Café and Big Fella’s Pizza. They form part of a roadside stop beside a BP on bustling Gooding Drive, near the upcoming Games hot-spots Metricon Stadium and Cbus Super Stadium.
Together the tenants provide annual net income on the block of nearly $350k, underpinned by strong leases; the Tavern is under lease until 2026, with two 10-year options.
The 3,548sqm property sold at auction to an unnamed investor for $4.55 million, representing a healthy 7.6 per cent yield.
The sale campaign was managed by Ray White Commercial’s Michael Willems, who reports there was spirited bidding from the 12 registered bidders on what is a “significant landholding” in the surging south-east Queensland market.
“This property attracted considerable interest as it offered an outstanding opportunity to secure a significant strategic investment on a well-located block, with multiple tenants and extensive frontage to Gooding Drive,” noted Willems.
Amid opportunities around the new light rail, hotel and casino developments and the $670 million expansion of the Pacific Fair shopping centre, Willems believes the region will continue to be at the forefront of the Queensland market.
“The Gold Coast has all the right economic drivers for continued growth including massive infrastructure investment, record apartment activity and population growth.”