GDI Property Group has settled on the acquisition of 50 Cavill Avenue Surfers Paradise for $48.75 million.
50 Cavill Avenue is a 22 levels of A‐grade commercial office building with a Net Lettable Area of approximately 16,566 sqm and undercover parking for 447 cars.
Following the settlement, managing director Steve Gillard said GDI intends to immediately commence a $9.5 million refurbishment program including upgrading the lifts, chillers, foyer and lift lobbies and refurbishing some of the vacant floors. “With the refurbishment program we intend to not only improve the appeal of the property, but achieve a 5 Star NABERS rating and permanently reduce our tenants outgoings” Gillard said.
“The property has received lots of leasing enquiry and we now look forward to converting that interest to leases. With an improving Gold Coast economy and a refurbished building, we anticipate occupancy at 50 Cavill Avenue being substantially higher by the end of 2016,” he added.
GDI funded the acquisition by a $75 million extension to its existing three year facility.
Gillard said with a passing yield of approximately 6.4% (net face) on occupancy of 58%, the acquisition is marginally accretive.
Australian Property Journal
