ROBINA GROUP PUTS EASTSIDE ON THE MARKET
Fully leased asset with solid tenants fronting major thoroughfare is up for grabs as company looks to focus on residential market.
ROBINA Group is cutting ties with its last asset in the fully leased Eastside office building as it focuses on residential projects.
The four-level Eastside building has a gross floor area of 5500sq m and includes 32 suites.
The fourth level has been held by Robina Group since construction was completed in 2007.
It was first released to the market in 2016 but a buyer was not found.
The top floor spans 1510sq m and has two tenants: the Queensland Government with a four-year lease on a 1203sq m tenancy and a 245sq m office leased to an education provider on a three-year term. It returns net income of about $705,000 a year.
The sale also includes the groundfloor Liquid Espresso cafe and 47 basement carparks as well as signage rights for the building.
Knight Frank’s Mark Witheriff and Colliers International’s Steven King and Tony Wang have been appointed to manage the sale, through an offers to purchase campaign closing on April 22.
Mr Witheriff said opportunities to secure investment-grade stock on the Gold Coast were few and far between.
“There is a shortage of high yielding, fully leased assets such as this anywhere on the Gold Coast,” he said.
“Eastside itself is a landmark building, with a quality list of tenants and owner-occupiers including LJ Hooker, Gilbert and Sutherland and a number of medical and financial related businesses.
“Significant new development in the surrounding precinct, such as the new Acuity Business Park, and continued strong occupancy at existing buildings, including The Rocket tower, augers well for longterm business activity in the area.”
Mr King said the asset provided the opportunity to purchase now, with a variety of options in the future further adding to its investment appeal.
“It offers flexibility for the investor to hold the entire asset and potentially subdivide and sell the individual spaces in future,” he said.
Robina Group chief executive Hylton Slater said strong demand for high yielding commercial stock had prompted the developer to release the office space to market.
It is the final asset held by Robina Group in Eastside.
“We have held this asset since we developed Eastside more than a decade ago due to its premium location spanning the entire top floor,” said Mr Slater.
“We believe now is the right time to part ways with this commercial space to focus on other opportunities, including our nearby Vue Terrace Homes community.”