This article is from the Australian Property Journal archive
GDI Property Group has taken the Gold Coast’s largest office tower closer to full occupancy, securing the signature of Ernst Body Corporate management for the top floor of 50 Cavill Avenue in Surfers Paradise after a $10 million upgrade to the building.
CBRE’s Nick Selbie negotiated the seven-year lease with a five-year option over the entirety of the 674 sqm 21st floor at $450 per sqm net, plus outgoings and GST.
GDI has undertaken a refurbishment and repositioning campaign since it acquired the 16,625 sqm tower late in 2015 for $48.75 million. Vacancy had reached around 60% following the GFC, and companies linked to owner Albert Chung – who paid $55 million for the property in 2004 – had been put into the hands of receivers in 2012.
Occupancy is now at around 97% after works that have included the introduction of new high speed destination control lifts, air conditioning units and the installation of end of trip and bike storage facilities.
Cosmetic upgrades of the building included the modernisation of all common areas, introduction of landscaping features, and upgrades most of the building’s floor plates. It was constructed in 1991.
Average rents in the building have increased by around 18% to $415 per sqm. Tenants in the building include Channel 9, Mantra, CBRE, Maven Dental Group, Regus and Auto Guru.
GDI purchased the Westralia Square building in Perth at a passing yield of 11.30% one year ago, with plans to value-add through refurbishment and re-leasing once the state government vacates the tower in 2020. It has fully leased 5 Mill Street in Perth after an intensive four-year campaign of upgrades and re-leasing, having taken on the tower with near-40% vacancy.
Around the same time, it sold off 66 Goulburn Street in Sydney for $252 million after it paid $136 million for it just three years earlier, when it has more than 6,000 sqm of vacancy and an impending expiry of 10,432 sqm.
Australian Property Journal
