This article is from the Australian Property Journal archive
PHILLIP Wolanski’s Denwol Group has put to the market high-yielding Surfers Paradise trophy retail asset Cavill Lane, at the base of the 5-star Hilton Hotel, which is expected to attract the attention of high-net-worth investors.
Cavill Lane is positioned in the heart of the tourist destination. It offers 4,344 sqm of retail floorspace over two stratum levels with basement car parking for 113 spaces included on title, with two street frontages within a busy dining, entertainment, and accommodation precinct.
The asset features 28 tenants, including a complementary mix of food and beverage, retail services, entertainment, and convenience retailers. Notable tenants include Thirsty Camel bottle shop, The Coffee Club, and ANZ.
Wolanski and his Sydney-based Denwol Group acquired the property eight years ago. The developer has been busy in recent years with luxury residential projects in Sydney’s eastern suburbs.
Stonebridge Property Group’s Carl Molony, Philip Gartland and Kevin Tong have been appointed to the listing of Cavill Lane.
The Stonebridge agents would not disclose a price. However, industry sources indicated to Australian Property Journal the asset could fetch a price the mid $30 millions range.
Cavill Lane offers income growth potential through annual specialty rent reviews ranging from 3.00% to 4.00%. The has a weighted average lease expiry of 5.6 years by area, underpinned by 10 new leasing deals commencing from 2024 with an average lease term of eight years. No single tenancy represents more than 12% of the gross income.
Molony told Australian Property Journal said interest was expected to come from high-net-worth investors, “particularly those who rate this area” and have holdings locally.
“The location speaks for itself, and there’s a huge amount of positive momentum in south-east Queensland,” he said.
Cavill Lane is located directly opposite the Surfers Paradise light rail station, which services over 32,000 daily passengers and is only 200 metres from the world-famous Surfers Paradise Beach.
Additionally, the asset is a 35-minute drive from Gold Coast International Airport and one hour and 15 minutes from Brisbane’s CBD.
Gartland added, “The property’s 113 underground car spaces included on title are particularly valuable and rare for this location, with a current estimated replacement value exceeding $149,000* per space.
“Additionally, Cavill Lane features scope to add-value through leasing repositioning as well as potential strata subdivision, subject to Council approval, providing future investment flexibility.”
Cavill Lane serves a growing population within a 20-minute drive time that is currently at 330,000 people and and projected to reach 421,000 by 2041.
The asset comes to the market as the retail sector sees a flurry of activity following a transaction freeze that was seen post-pandemic across the broader commercial real estate sector.
