Coast market muscles up

PROPERTY industry figure Max Delmege has bought a Bundall office building in a further sign of a strengthening market on the Gold Coast.

The 130 Bundall Rd building was bought by Mr Delmege for about $8 million, according to market sources.

It was sold by company Jarema, which acquired it for $8.85 million in 2004.

The six-level building occupies a 2226sq m site and has a net lettable area of 3670sq m.

It was built in the 1980s and has recently undergone a major refurbishment including upgrades to lifts, foyer, bathrooms, ceilings and lighting, and a full internal and external repaint.

Marketing agent Mark Witheriff, of Knight Frank Gold Coast, said the deal follows a string of office building transactions so far this year, including the Bundall Corporate Centre, which was sold for $89 million.

“This is the most activity we have seen since 2005/06,” he said.

“It represents an improvement in the vacancy rate, particularly in areas such as Bundall, Southport and Robina.”

The Gold Coast office vacancy rate in January was 12.2 per cent, down from 14.3 per cent 12 months earlier, and industry experts believe the next Property Council office market report, due next month, will show a further drop.

Mr Witheriff, who has negotiated the sale of the 130 Bundall Rd building twice before, said the owner has the option of boosting income through a new leasing strategy or strata-titling the offices to take advantage of a strong owner-occupier market.

He said the property drew multiple offers during the campaign including from investment groups on the east coast of Australia and Singapore.

Mr Delmege said the location opposite the cultural precinct, under construction on the site of the former Gold Coast City Council chambers, was a key reason for his purchase.

He said he is considering what strategy to undertake for the building.

Mr Delmege is the managing partner of the Delmege O’Shea real estate agency and is a former owner of the Manly Sea Eagles rugby league team.

He has had a long association with the Gold Coast commercial property market and last year bought Bell House at 91 Upton St, Bundall, for $4.8 million.

Other office buildings to sell this year include 183 Varsity Pde, Varsity Lakes, for $11.8 million, 69 Laver Drive, Robina for $7.6 million and 12 Ferry St, Nerang for $3.625 million.