Morris adds to sell-up
DEVELOPER Barry Morris, in the wake of selling three retail titles in one of his Broadbeach towers at strong yields, is adding to his sell-off.
The initial sales were on the ground floor of Qube, a highway front tower on the northern side of the Broadbeach retail area.
The strata titles all sold at yields of less than 6 per cent.
The Morris Property Group is following up its sales success by marketing a title at the base of the newly-completed Koko building in Broadbeach.
It also is selling a holding in the highway-front Otto building at Mermaid Beach.
Daniel Doran, of CBRE, said the Qube sales, made off-market, were all to investors, with two of them from Sydney.
The sales were at between $540,000 and $1.7 million, the figure achieved for a title occupied by a Sushi Train outlet on a 10year lease. The net incomes of the three titles ranged from $29,900 to $93,815.
Mr Doran, who is marketing the Morris strata-titles with CBRE’s John Nucifora, said the new listings, like those in Qube, were noncore assets for the Morris group.
“The new titles are being sold in the wake of their successful leasing to strong tenants.
“The Morris group, given the results at Qube, feels now is the time to sell.”
The Koko title, which spans 84sq m, is leased to ASX-listed Flight Centre and occupied by boutique luxury arm Travel Associates.
The lease is for five years, with a five-year option, and the net return is $57,392.
A business with a chain of dental outlets occupies the 207sq m being sold at the base of the Otto tower.
Coastal Dental Care, which has 12 practices, including seven on the Gold Coast, has a lease until 2035 on a 207sq m title.
The initial net return is $152,878 a year.
The Koko and Otto titles are being sold by expressions of interest, which close on March 1.