Tower of power hits the market
IT HAS been refurbished, refilled and resurrected and now the Gold Coast’s corporate tower of power is about to be put back on the market and resold.
Sydney-based fund manager GDI Property Group has moved to offload its landmark Surfers Paradise office asset – 50 Cavill Ave.
Industry sources estimate the almost fully occupied tower will fetch “north of $80 million”. On its website, GDI Property Group declares it has an independent valuation of $88.1 million.
It purchased 50 Cavill Ave in 2016 for $48.75 million when the 22-level 16,625sq m building had a sky-high vacancy of about 60 per cent.
Occupancy had gone into a freefall in the wake of the GFC and also was hit hard by a huge wave of new office stock that flooded the Coast market.
The asset – featuring a distinctive mirrored facade – fell into receivers’ hands in 2012.
Immediately after acquiring the beleaguered blue chip tower, GDI Property Group embarked on a $10 million program to revamp and restore the tower to its former glory.
The works included six new high speed lifts, state-ofthe-art air-conditioning units, installation of end-oftrip and bike storage facilities as well as cosmetic upgrades.
Under the new ownership more than 41 leasing deals also were secured involving new occupiers, expanding tenants and lease renewals.
The move to sell 50 Cavill Avenue follows the clinching of a top-floor tenant, bringing the tower’s occupancy to 97 per cent.
CBRE’s Scott Gray-Spencer, Jonathan O’Brien, Kyle Youngson and Steve Clark have been appointed to market the building via an expressions of interest campaign.
Mr Gray-Spencer said the opportunity to secure the Gold Coast’s most recognised corporate tower would ignite strong local and international investor interest due to its strong yield, brilliant floor plate and 360-degree views.
“As of result of recent refurbishments, 50 Cavill Avenue boasts one of the most attractive tenancy profiles for a corporate tower on the Gold Coast, and offers both the benefit of continued rental growth and low future capex requirements,” Mr GraySpencer said.