VARSITY LAKES SALE A VOTE OF CONFIDENCE
Coast investor beats competition to snap up building, with would-be buyers attracted to its strong tenant profile and potential for future redevelopment
LISTED real estate company Abacus Property Group has come out ahead by $2 million after offloading its office building at Varsity Lakes to a Gold Coast investor.
The Sydney-based firm sold 169 Varsity Pde, bought for $12 million in September 2007, for $14 million. The sale settled on Wednesday.
The 1.30ha property has a singlelevel building with a net lettable area of 3356sq m.
Tenants in the fully leased property, which has a fully leased income of $1.171 million, include NBN Co, the company building the National Broadband Network, and Bank of Queensland.
The property was marketed with 1 Bellvue Drive, also owned by Abacus, by Knight Frank’s Mark Witheriff and James Branch, and Brad Duncalfe and Sam Riley of Ray White Commercial GC South.
Mr Witheriff said there had been significant investment activity on the Gold Coast in the past six months.
“We are anticipating further demand, given the recent interest rate reduction from the Reserve Bank and hopefully some further relaxation on lending requirements from APRA, which should see further liquidity and investment,” he said.
Mr Duncalfe said the property attracted a wide range of interest from development groups drawn to the strong tenant profile.
“They were also attracted to the significant upside in the potential future redevelopment of waterfront residential apartments on this site,” he said.
That could include knocking down the office building to make way for a medium-density residential development with three buildings, subject to council approval, and similar to the Brooklyn Apartments development in Varsity Lakes.
The Abacus building at 1 Bellvue Drive was purchased for $11 million in September 2007. It is understood to be under contract.
The 8670sq m property contains a three-level building with a net lettable area of 3650sq m delivering a passing income of $497,487.