ZUPP SNAPS UP BUNDALL PROPERTY FOR $7.05M
Group makes most of tight vacancy rate for this ever-green Gold Coast suburb with purchase of six-level building they’ll spend millions improving
ZUPP Property Group has snapped up the half-vacant 140 Bundall Rd building for $7.05 million as it seeks to capitalise on a tight vacancy rate in the central Gold Coast suburb.
The six-level building was offloaded by Jarema Pty Ltd, linked to the Kearney Group, which paid $5 million in 2003 for the property.
About 46 per cent of the 3143/sq m of space at 140 Bundall Rd is vacant.
However, Zupp Property CEO Neil Ferguson said he believes they can fill the building within 12 months.
“We think given the location, the quality of the asset, that after a refurbishment and refreshment of the building, we can have the building fully occupied within 12 months,” he said.
Mr Ferguson said Zupp will spend millions improving the property.
“We’ll start refurbishing the vacant floors and then we’ll make sure the tenants are looked after,” he said. “We believe in value for money and offering tenants what they want.”
Mr Ferguson said Zupp can replicate its success with 64 Marine Pde, Southport.
The company bought the asset half-vacant for $10.7 million in 2014.
After extensive capital works Zupp was able to achieve an almost full house.
The 140 Bundall Rd property was marketed by Mark Witheriff, James Branch, and Sebastian Fahey of Knight Frank.
Mr Witheriff said the marketing campaign received 50 inquiries, mostly from eastern seaboard buyers plus a few parties from Singapore.
He said Zupp has identified a gap in the Bundall market.
“Corporate Centre space is about $460/sq m gross and everyone else is between $250/sq m and $260/sq m,” he said.
“So there is a gap for office space a step below the Corporate Centre but above the rest on offer.”
The Property Council’s report for the Gold Coast office market showed a vacancy rate of 9.4 per cent at Bundall — one of just two suburbs to achieve a sub-10 per cent rate.