Torquay’s Bells Beach Backpackers snapped up by investor
INVESTORS have jumped on a prime gateway development site on Torquay’s main thoroughfare seeing the current Bells Beach Backpackers site selling for $2,150,000 on a yield of 4.1 per cent to a private investor.
The three-level building with ocean views currently occupies two prime adjoining development sites at 51-53 Surf Coast Highway, Torquay, with a total land area of 1,463 sqm.
The property is central to the Gilbert Street and Coles business precinct and the Surf Coast Retail Plaza precinct.
Selling agents Cushman and Wakefield’s Lukas Byrns and Marcus Neill managed the sales campaign on behalf of a local private vendor.
Sold with a passive income of approximately $90,000 pa until September 2023, the site occupies a high profile main road site.
It is currently zoned flexible general residential, and there is potential for multiple uses which include commercial and/or residential.
Cushman and Wakefield’s director, Middle Markets, Marcus Neill, said given the huge potential to either improve the existing backpackers accommodation and multiple development opportunities under the commercial or residential zoning, the site was highly sought-after.
Cushman & Wakefield’s director Development Transactions & Advisory, Lukas Byrns, said they are seeing a wave of capital enter the Surf Coast Shire, demonstrated by the fact that they received 120 enquiries and seven offers for this property from a range of high-net-worth investors, and local and interstate builders and developers.
“Aside from an expected uplift in intra-state travel once restrictions ease, Torquay has one of the highest population growth rates in Victoria expanding by 24 per cent between 2016 and 2020,” Mr Byrns said.
“That’s forecast to continue, likely supported by the continued interest in regional areas as people seek to relocate amid the pandemic.”