Circle on Cavill for sale as owner’s Wanderlust builds
CIRCLE on Cavill shopping centre owner EG Funds Management has decided to offload the shopping centre it acquired for about $40 million more than seven years ago.
The Surfers Paradise commercial precinct, which recently underwent a $13 million refurbishment program, has attracted a range of new tenants recently including White Rhino, Poke California, Holey Moley minigolf and Strike bowling.
The centre, which has a WALE (weighted average lease expiry) of 6.6 years, has more than 12,364sq m of net lettable area including office space.
Sydney-based EG acquired the property in a receivership deal in 2011.
It is being put on the market as EG shifts its focus to its proposed Wanderlust twin-tower development in the heart of the Surfers nightclub precinct.
Earmarked for a 5255sqm site between Orchid Ave and Surfers Paradise Blvd, the project was granted council approval earlier this year.
It is touted to be a gamechanger for the Surfers Paradise nightclub scene, comprising a podium-level club with bars, pools, dance floor and jacuzzi rooms along with 770 apartments.
Industry sources indicated EG could pocket $75-$80 million from the sale of Circle on Cavill’s entertainment, dining,
convenience-based retail and office hub, which surrounds a circular open-air piazza.
EG recently completed upgrades and tenant fit-outs including a children’s playground, landscaping, car park automation and a giant TV screen.
The centre is anchored by Woolworths, which has a longterm lease.
“The physical works have greatly transformed the shopping experience to a day-andnight destination with diverse food and entertainment options. We’ve received positive feedback from customers and increased visitations post the upgrade,” EG divisional director Daniel Farley said.
Sam McVay, of McVay Real Estate, and JLL’s Sam Hatcher and Jacob Swan are marketing the property in an expressions of interest campaign that starts next month.
Mr McVay said the Coast market continues to go from strength to strength, fuelled by offshore demand for premises in Surfers Paradise.
Mr Swan said: “Following its repositioning, Circle on Cavill has been transformed into one of the Gold Coast’s best mixed-use developments. Its focus on dining and convenience retailing is a perfect tenancy mix for the Surfers Paradise market.”
Circle on Cavill’s retail and commercial precinct sits below two residential towers comprising 644 apartments. The $551 million development was completed by Sunland Group in 2007.