What’s happening?
Sentinel Property Group has sold a freehold office building at 110 Wood Street in Mackay’s city centre.
The property was sold to a private investor for 8.085 million dollars. The deal was negotiated by Neville Smith of CBRE.
The building was part of the Sentinel Regional Office Trust, an open-ended pooled office trust comprising office buildings in Townsville, Mackay, Cairns, Brisbane, Darwin, Newcastle and Canberra.
Sentinel CEO Warren Ebert said that since purchasing the Wood Street asset, the group secured a seven year lease to the State Government and completed a minor refurbishment.
“This transaction is indicative of Sentinel’s strategy of buying property at the right time and then adding value to the asset,” he said.
“Mackay has been a crucial regional market in the national growth and success of Sentinel over the past 16 years,” Mr Ebert said.
“The city’s economic growth is driven by diversified sectors including mining, agribusiness, construction, education, logistics and tourism.”
Sentinel focuses on commercial and industrial property trusts, with its trusts consistently ranked among the best performing of their kind in Australia.
Why it matters
While the asset is in Mackay, the result signals continued investor confidence in regional Queensland office markets.
The Sentinel Regional Office Trust includes Townsville assets, linking this performance to the broader North Queensland commercial property landscape.
Strong returns in one regional centre can influence investor appetite across similar markets, including Townsville.
By the numbers
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8.085 million dollars, the final sale price for the Wood Street office building in Mackay CBD.
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3.2 million dollars, the purchase price just over two years ago, delivering a profit of more than 150 per cent.
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Circa 37% internal rate of return achieved for Sentinel investors from the transaction.
Further context highlights the asset scale and Sentinel’s footprint in North Queensland:
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1,330 sqm of nett lettable area within a 6 star NABERS rated building.
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2,023 sqm land area supporting the office complex.
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39 rooftop car parks, a rare feature in a regional CBD setting.
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Circa 500 million dollars invested by Sentinel in Mackay across industrial, office and large format retail assets.
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280 million dollars paid in 2022 for Caneland Central, its largest Mackay acquisition.
Zoom in
The 110 Wood Street building carries a 6-star NABERS rating and includes 39 rooftop car parks.
Since the acquisition, Sentinel secured a seven-year lease to the State Government and completed minor refurbishment works.
These steps supported the value uplift during the hold period.
Zoom out
The Sentinel Regional Office Trust spans key cities, including Townsville, reflecting a diversified regional strategy.
Sentinel has built its portfolio across commercial and industrial assets nationally.
North Queensland remains a focus area within that broader strategy.
What to look for next?
Further regional office activity across North Queensland will be closely watched by the commercial property sector.
