Retail Investment | $6,450,000 | Net Yield: 5.90% | QLD

31-33 Edwin Campion Drive, Monkland, presents a brand-new, dual-tenanted retail investment within the rapidly emerging Bunworth Park Home & Life retail precinct in Gympie, Queensland. This off-market acquisition reflects the calibre of secure, depreciation-rich retail assets Rethink Investing continues to secure on behalf of clients.

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The property delivers a fully leased net income of $380,266 per annum, anchored by two national tenants, Auto Masters and Silly Solly's, on an impressive nine-year weighted average lease expiry. As a new-build concrete panel showroom expected to reach practical completion in May 2026, the asset offers significant tax depreciation benefits from day one, alongside minimal near-term capital expenditure requirements.

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The property sits on a 2,823 square metre freehold site, comprising a total gross lettable area of approximately 1,251 square metres, split between 351 square metres for Auto Masters and 900 square metres for Silly Solly's. Auto Masters occupies its tenancy under a ten-year double net lease at an initial rent of $105,000 per annum, with three further five-year options and fixed 3% annual increases. Silly Solly's occupies its tenancy under an eight-year net lease at an initial rent of $279,000 per annum, with two further five-year options and the same fixed 3% annual escalation. Non-recoverable outgoings total just $3,733 per annum, reflecting the strength of the lease structures.

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The asset is positioned within the Bunworth Park retail precinct, a major large-format retail hub fronting the Bruce Highway and anchored by co-tenants including Bunnings, Harvey Norman, JB Hi-Fi, BCF, Chemist Warehouse, Spotlight, Rebel, Petbarn and Autobarn. Gympie is experiencing steady population growth of 1.92% annually, supported by relative housing affordability and substantial State Government investment, and serves as the key regional service centre for the Cooloola and Mary Valley regions approximately 160 kilometres north of Brisbane.

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Rethink Investing successfully negotiated the purchase price down from the seller's original asking price of $6.9 million to $6.45 million, representing a significant saving for our client. Two recent comparable transactions within the same precinct reinforce the pricing benchmark and future value potential of this asset: 21 Edwin Campion Drive sold for $4,650,000 at a 5.1% net yield, while Lot 35/9 Edwin Campion Drive sold for $3,550,000 at a 5.5% net yield.

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With a purchase price of $6,450,000 and total cash required of $2,761,205 (including a 35% deposit and purchasing costs), the investment delivers a net annual cash flow return of $380,266, a net yield of 5.90%, and a net yield of 5.47% accounting for purchasing costs. Against a cost of loan of $272,512.50, the cash flow after mortgage costs sits at $107,753.50, translating to a return on equity of 3.90% in pure cash flow terms. Accounting for conservative capital growth of 5%, 7% and 10%, the return on equity increases to 15.58%, 20.25% and 27.26% respectively.

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With embedded rental growth, minimal landlord outgoings exposure, a nationally tenanted covenant mix, and positioning within one of regional Queensland's fastest emerging retail precincts, this acquisition reflects the calibre of retail assets that Rethink Investing continues to secure for clients.

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About Rethink Investing: Australia & New Zealand's largest and most experienced commercial buyer's agency $7 billion+ in commercial property secured for clients. Exclusive access to 70% off-market opportunities. Specialists in high-yielding commercial property investments.

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