NEARLY EMPTY OFFICE TOWER SELLS FOR $5.8M

Written on the 5 April 2016 by Nick Nichols

NEARLY EMPTY OFFICE TOWER SELLS FOR $5.8M

A NEAR empty office building in the heart of Southport has been snared by a Gold Coast investor for $5.8 million.

The five-level Kaybank Plaza, located at 33 Scarborough Street, was bought just days after being passed in at auction.

The sale price has been struck on an initial yield of just 0.5 per cent, indicating that the entire 2755sqm property is reaping an annual rental income of $29,000.  

The sale has been struck at a building rate of $2105sqm.

However, according to negotiating agents James Crawford and Ed Howard of Colliers International, the new buyer is planning a major refurbishment of the property.

Kaybank Plaza, developed by one of Southport's biggest landlords in the 1980s, the late Alex Katranski, has two street frontages and potential for a broad range of uses under the flexible zoning of the Southport Priority Development Area.

"The new buyer is a local investor who is reviewing various opportunities for the building but will likely reposition the building with a major refurbishment," says Crawford.

"The office leasing market has continued to improve with vacancy rates at their lowest level in eight years. The options for companies seeking 500sqm tenancies or larger are pretty slim."

Kaybank Plaza has a site area of 1591sqm and two levels of basement parking for 80 cars.

The latest deal comes on the heels of a flurry of office sales in Southport in the past six months, including Bankwest Business Centre which was sold by Crawford for $8.3 million.

Other Southport sales include Bartercard House, at 121 Scarborough Street, which sold for $11.6 million and the Connaught Centre at 26 Marine Parade which sold for $9.7 million.

"With a strengthening leasing market and no new supply of office in the local market, buyer demand is expected to remain strong" says Crawford.

 


Author: Nick Nichols

Latest News

GUVERA ESCAPES WIND-UP ORDER

GUVERA has avoided being wound up after a claim for a $1.78 million debt by Kwong Properties was dismissed at the ...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

WESFARMERS' COAL BUSINESS ON FIRE

WESFARMERS (ASX: WES) has lifted its first-half profit guidance due to surging coal prices and higher than expected c...

SIXTH CONSECUTIVE RECORD PROFIT FOR AP EAGERS

AP EAGERS (ASX: APE) will beat guidance with its sixth-consecutive record profit when it reports its full year result...

Related News

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter