Retailing tycoon Gerry Harvey has purchased the Cairns Hypermart for $16.175 million.
The 15,300 square metre shopping centre has several big-name tenants, including Harvey Norman which has 9400 square metre space which represents 61% of the centre’s space.
Its other tenants include Snooze and Freedom Furniture. It returns a rental income of $1.94 million per annum and is about 99% leased.
The centre and office tower located on the corner of Spence and Draper streets comes with 162 car parks on its 2.43 hectare site. It has been bought through the Harvey Norman subsiduary, Calardu Cairns.
Both Harvey Norman and Freedom Furniture have been tenants in the building since its 1995 construction, Harvey Norman having made lease agreements until 2018 and Freedom until 2015. They pay 66% of the centre’s income.
Harvey told the Cairns Post he thinks the region has a good long-term future.
“Overall, Cairns is one of the better towns in the country and it’s got a good long-term future,” he said.
The buyer catchment area for the property is 229,920 people and that number is expected to grow at a rate of 1.5% to 1.8% per annum.
On its listing last year there were $20 million price hopes. The last valuation was $17 million as at December 31, 2012.
It last sold for $16.8 million in 2001 and was sold at $17.55 million in 1999. It was sold by Charter Hall Direct Property Management Ltd, which had taken over the hypermart’s owners, PFA Diversified Property Trust.
This article first appeared on Property Observer.