ROCKET UP FOR SALE AS TWO 'TROPHIES' TEST MARKET

Written on the 28 April 2015 by Nick Nichols

ROCKET UP FOR SALE AS TWO 'TROPHIES' TEST MARKET

ROBINA Group has moved to sell The Rocket office building in what has been billed as the Gold Coast's biggest commercial offering since 2011.

The news comes on the heels of receivers last week placing the retail precinct of the Soul tower in Surfers Paradise on the market to take advantage of a growing investor appetite for Gold Coast assets.

The 16-level Robina tower is being offered in one line in a move expected to generate national and international interest.

Market sources say The Rocket could sell between $75 and $80 million, although Robina has indicated the building completed in 2009 - would cost $110 million to build today.

A sale at these levels could deliver a prospective purchaser a yield of above 8 per cent with The Rocket close to full occupancy.

A number of strata-titled Rocket offices sold by Robina Group have been reacquired, allowing the CBDRobina developer to offer the property as a complete asset.

Both The Rocket and Soul are being marketed by Knight Frank's Mark Witheriff in conjunction with Tania Moore and James Branch respectively.

"These are A-grade properties that will test the strength that the commercial market on the Gold Coast which has shown some improvement over the past six months," says Witheriff.

The Soul retail precinct has 6936sq m of floor space across three levels and is being offered through an expressions of interest campaign closing on June 4. The campaign for the Rocket closes on June 10.

The Rocket is located on a 5505sqm site and features 12,815sqm of net lettable area across 15 levels of A-grade office space. It also has a1650sqm street level commercial and retail precinct.

Among its tenants are legal firms Slater and Gordon Lawyers and Aitken Legal, GHD Engineering, financial services groups Members Alliance, MSI Taylor and Robina Financial Services, WMS Chartered Accountants, music streaming service Guvera and Auswide Bank.

"This is a landmark building that will sell at an attractive price and appeal to investors from Australia and offshore," says Witheriff.

"We expect to see interest from a broad range of high net worth private investors and property funds locally, nationally and internationally, with favourable lending conditions and high yield making it a hugely desirable investment."

Witheriff says the mix of high profile tenants on long-term leases - averaging about five years, with options sets The Rocket apart as "the best office building currently on the market in Queensland".

"This is a trophy acquisition in anyone's language," he says.

Robina Group director Tony Tippett says the company decided to sell The Rocket after being approached by potential purchasers.

"The Rocket is our flagship corporate tower in CBDRobina and as such has been targeted by potential investors for some time," he says.

"We made the decision to sell this asset due to the level of enquiry we received for the building. Our focus will be on an active workbook of projects, including some 500 residential properties we have in the pipeline to release this year."


Author: Nick Nichols

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