The Conservatory in Cairns Sold for $6.1 Million
A China-based investment group with Australian connections has purchased its second Cairns asset in 12 months, buying a two-level retail/office building through Ray White Transact’s Rick Bird and Scott Green of Ray White Commercial Cairns for $6.1 million.
Rick Bird said there was strong local and overseas interest in the Offers to Purchase campaign for The Conservatory at 9 Abbott Street, which backs onto Lake St and is adjacent to the Pullman Hotel near the Reef Casino.
The Conservatory has a gross lettable area of 2935 sqm and is on a 3091 sqm site with potential for a code-assessable development of 16 storeys.
“It’s a counter-cyclical time to buy in Cairns, which has been in the doldrums for years and is now coming back,” Rick Bird said.
“There has been a flurry of activity and tourism is certainly on the improve, with the fallen dollar attracting overseas and interstate tourists.”
Early last year, the group which snapped up The Conservatory paid about $10 million in a receiver’s sale for the 92-room 4-star Hotel Cairns, close to the Cairns Esplanade.
Rick Bird said the buyer planned to hold the Abbott St property as an investment and redevelop it in the future. The transaction realised an initial yield of 6.18 per cent.
Rick Bird said Cairns “was on its way back”.
“If that casino at Yorky’s Knob goes ahead it will really fire it up,” he said.