This article is from the Australian Property Journal archive
THE Cromwell Property Fund has completed the puzzle by securing the Lido Arcade in Surfers Paradise for $12.8 million.
Lido Arcade adjoins two other properties already owned by the CPF and takes the total value of the portfolio to over $455 million. The acquisition gives CPF control of three contiguous sites just one block from The Esplanade in the heart of Surfers Paradise.
The combined purchase price of the three properties totals $50.8 million with a combined net lettable area is 8,445 sqm.
Cromwell’s executive chairman Paul Weightman said the new acquisition added to the significant value-add opportunity presented by the Surfers Paradise properties – the Paradise Avenue building, the Forum building and now the Lido Arcade – together known as the Forum Properties.
The head lease of the Forum Properties is to Rozendale, a subsidiary of the Raptis Group. Rozendale manages sub-leases to a total of 54 tenants. Under a put and call option between Raptis Group’s subsidiary Rozendale and the CPF, Rozendale may acquire the properties from the fund at a premium to the purchase price.
Under the option, the fund will share in any value created by Rozendale as a result of any development approval which Rozendale successfully secures from the Gold Coast City Council.
Australian Property Journal
