A Queensland council has snapped up a prominent office tower, outlaying $46 million for the asset to add to its investment portfolio.
The City of Gold Coast has acquired the Wyndham Corporate Centre at Bundall from property fund management company RF CorVal.
The 7931sq m tower at 1 Corporate Court has an occupancy rate of 93 per cent, a fully leased net income of $3.53 million and a WALE of 5.3 years.
CBRE’s Mark Witheriff, Jack Morrison and Peter Chapple with Dan McVay and Brock McDermott of McVay Real Estate brokered the deal on behalf of RF Corval.
The council’s chambers and its arts precinct are also at Bundall, an 10-minute walk from the new purchase.
“This is the largest office sale on the Gold Coast this year and a great example of the strength of the Gold Coast office sector, where vacancies are currently sub-6 per cent and incentives are falling, with real growth in rental rates,” Witheriff said.
“Bundall emerged as the Gold Coast’s tightest office market in the first half of 2023 with vacancy dropping to 4.7 per cent.
“With construction prices increasing and a lack of supply, significant pressure will be placed on effective rents for existing assets.”
Wyndham Corporate Centre is tenanted by international, national and local occupiers including Wyndham Destinations Asia Pacific, Aspire42 Services and IBM Australia.
The building has 267 carparking spaces, an on-site cafe and a 4.5 Star NABERS Energy Rating and Water Rating.
RF CorVal purchased the entire Corporate Centre precinct in 2017 and has retained the separate Corporate Centre tower as well as the surrounding land.
RF CorVal head of transactions Oliver Picone said the sale was in line with the original strategy to break down the investment lot size of the entire corporate centre and returns a “substantial amount of the original capital to investors”.
