Council pays record price for office
The City of Gold Coast is buying the balance of the Gold Coast Corporate Centre – at Bundall.
In what is the highest priced paid for a Gold Coast office, council is paying $109 million for the 12 level Corporate Centre One – as an investment.
It outlaid $46.25m in mid-2023 for the neighbouring smaller Wyndham Corporate Centre.
Occupying a total 2.76 hectares with 470 car parks at the corner of Slatyer Avenue and Bundall Avenue, the two offices were offloaded by RF Corval, which paid Cromwell $89m in 2017.
At the time the complex was known as the Bundall Corporate Centre.
Bundall is a kilometres south west of Surfers Paradise.
Record deal
Corporate Centre One contains 11,500 square metres, including within a lower level podium, leased to 37 tenants, amongst them, CBA and KPMG.
It occupies 2.26ha of the Gold Coast Corporate Centre, split as four lots.
Developed 40 years ago, it has recently been revamped and re-let.
“CorVal has been an extremely active manager of the asset over it period of ownership taking the building from carrying long-term 20-30pc vacancy to effective full occupancy,” CBRE marketing agents, Jack Morrison and Mark Witheriff, said.
“The Gold Coast office market continues to be one of the strongest performing in the country with low single digit vacancy and strong year on year rent growth,” he added.
“With construction pieces continuing to make new office development extremely difficult and creating a lack of supply, this trend is set to continue in the medium term,” according to the executive.
“Over its period of ownership, Corval has achieved a masterplan across the site, spent targeted capital expenditure and completed over 30,000 sqm of leasing deals”.
The vendor’s chief investment officer, Oliver Picone, said the deal leaves investors “well ahead” of the initial underwrite “over a period where office investments have faced numerous challenges”.
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