A deal to purchase a prominent Sunshine Coast retail precinct has been hatched by two of the region’s property figures while they were bobbing on skis in the early morning surf.
RM Capital director Remi Rafter and realtor Bob Stewart completed the deal late last month, with the fund manager paying $7.6 million for the retail component of Syrenuse Mooloolaba.
Mr Rafter believes the property, situated at the intersection of Brisbane Road and Mooloolaba Esplanade, will be the best corner retail precinct in Mooloolaba.
Mr Stewart has managed the property for 15 years on behalf of Brisbane investor Joan Crowley, who has owned Syrenuse since it was first built in 1982.
Mr Stewart told his surf clubmate, in August, that Mrs Crowley was interested in selling the corner block, initiating an off-market negotiation that concluded with a contract being signed at the end of November.
“It was an opportune time for her to sell,” Mr Stewart said.
Syrenuse is a landmark eight-storey mixed-use beachfront building. Its enduring design by Noel Robinson Architecture has been recognised through multiple industry awards.
It is the 664sqm of commercial lettable space, comprising a diverse mix of seven tenancies, which RM Capital has acquired.
Tenants include Leading Realty Sunshine Coast, Cici’s Continental Deli, Hair At Mooloolaba, Enrich Thai Massage, Zambezee fashion boutique, Pink Pantha convenience store and long-established Mexican restaurant Montezuma’s, which is in the process of relocating.
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Montezuma’s departure has provided RM Capital with an opportunity to modernise and enhance the property with the goal of it becoming a retail showplace. Architectural plans are already being drawn up.
Mr Rafter said the precinct would become a quality asset, comparable with Fortitude Valley’s James St and the Howard Smith Wharf complex.
“That’s the standard we’re looking at,” he said.
He said it would be the best retail corner in Mooloolaba, pointing out that most visitors now park in the multi-storey car park in Brisbane Road, before accessing the beach or the esplanade shops.
“Everyone who visits Mooloolaba will walk right past our property and our shops. This is where you want to be,” he said.
“It’s why people call this intersection Central Station.”
RM Capital established a fund and sought $5 million of investment to fund the purchase, pay fees and costs, and put aside $2 million for renovations. The balance of funding was provided by National Australia Bank.
The fund was fully subscribed within hours, exclusively by local investors.
Mr Rafter said the plan was to actively manage and improve the property’s performance and appearance, attract high-quality national tenancies, then sell the asset, perhaps in five years’ time noting the flexibility offered through the eight separate property titles.
He said investors were expected to benefit from a forecast 89 per cent return, made up of six percent quarterly cash distributions, as well as a share of the returns when the property is sold providing the fund members with wide flexibility during the selling period.
The aerial imagery in this story is from Australian location intelligence company Nearmap. The company provides government organisations, architectural, construction and engineering firms, and other companies, with easy, instant access to high-resolution aerial imagery, city-scale 3D content, artificial intelligence data sets, and geospatial tools to assist with urban planning, monitoring and development projects in Australia, New Zealand and North America.
