|Well located on one of the major entry roads into Townsville, Bowen Road. The proerty is currently finalising a major renovation.
Townsville is Australia’s largest urban centre north of the Sunshine Coast, with a population estimate of 180,000. The Townsville market has been depressed for a number of years and is starting to bounce back.
TARHF purchased the property in October 2015 as a freehold passive property. As landlords, TAHRF receive indexed income from the operator of the property. The lease is 30 years and subject to regular reviews. The landlord’s obligations under this lease are relatively little for a property of this type.
In February 2019, a major flood and storm hit the property and the property was taken off line for repairs for around six months. We were able to extensively renovate the property, add additional rooms and hand back to the tenant a well renovated property which will underpin their trading performance and the value of our property.
The property continues to perform extremely well; generating high income, indexed rentals and downside protection. With excellent yield compressions since acquisition, the capital gains continue to accrue.