Merrimac Tavern Investment Sold at Auction for $4.55 Million
A significant strategic investment anchored by a popular pub and other prominent retail tenants at Merrimac on the Gold Coast has been sold at auction by Ray White Commercial Gold Coast for $4.55 million.
The property featuring the Merrimac Tavern at 10-16 Merrilaine Crescent, Merrimac, was sold to a local investor by Michael Willems of Ray White Commercial Gold Coast on behalf of a private owner for a yield of 7.6 per cent.
Michael Willems said there were 12 registered bidders at the in-room auction at the Gold Coast Turf Club and on some spirited bidding for the asset, which is located on high volume traffic road with easy access on a land area of approximately 3,548 sqm.
“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,” he said.
“The asset represented a fantastic opportunity to purchase a significant landholding with three well-known tenants. With a nett income of $347,629, 10-16 Merrilaine Crescent is secured by three strong leases.
“Merrimac Tavern is leased until 2026 with 2 + 10 year options. Counter Cafe and Eatery and Big Fella’s Pizza are also fantastic tenants on strong leases.
“The successful purchaser has joined an array of investors in the immediate area, with McDonald’s across the road and BP directly next door.”
Michael Willems said the property is close to both Metricon Stadium and Cbus Super Stadium, which will soon be the focal points for the 2018 Gold Coast Commonwealth Games.
“The property also has easy access to the M1 Motorway, and therefore great connection to the Gold Coast International and Brisbane International airports,” he said.
“The Gold Coast has all the right economic drivers for continued growth including massive infrastructure investment, record apartment activity and population growth.
“New jobs are being created from the light rail, the casino redevelopment and the $670 million expansion of Pacific Fair shopping centre.”