Brisbane-based fund manager Sentinel Property Group is believed to have struck a deal to buy a Gold Coast office building for about $70 million.
If a sale of The Rocket office tower at Robina is finalised, it will be one of the group’s, and the Gold Coast’s, largest ever acquisitions by value.
Sentinel managing director Warren Ebert yesterday confirmed the group was conducting due diligence on the tower.
He said it also had launched a capital raising for a stand-alone trust to acquire the asset.
Sentinel has a growing Gold Coast investor base and is hosting its first investor function at Surfers Paradise on Thursday. It has been looking to secure a Gold Coast investment for some time, circling a number of properties in recent years including, reportedly, the Oasis Shopping Centre at Broadbeach that sold earlier this year for $103.5m.
In September, Sentinel paid $20m for the Coles-anchored Jimboomba Junction Shopping Centre south of Brisbane.
The Rocket is Robina’s first commercial tower and is the Gold Coast’s second-largest commercial premises after Surfers Paradise office tower 50 Cavill Avenue. The 16-level A-grade building was designed by architects Woods Bagot and developed by Robina Group in 2009.
The 12,814sq m building is 92 per cent occupied. Tenants include Slater & Gordon Lawyers, GHD, Auswide Bank, Aitken Legal, WMS Solutions, Members Alliance and Evocca College.
Marketing agents Mark Witheriff and Tania Moore from Knight Frank as well as Robina Group declined to comment on the sale negotiations yesterday.
Sentinel’s biggest acquisition to date was the Citilink Business Centre at Brisbane’s Bowen Hills, settled in December for $62m.
The group is eyeing a potential IPO and has said it may sweeten the deal with an offer of an interest in its management company in a planned float.
Sentinel’s total national property portfolio comprises more than 30 retail, industrial, land and office assets in Queensland, NSW and Victoria and it is on track to manage $1 billion worth of property assets.
October Real Estate Market Round Up by Allie Coutts
October Real Estate Market Update. Hello everyone, my name is Allie Coutts from Madeleine Hicks Real Estate and I’m doing the October roundup for sales that settled in October for our 4053 postcodes.
We’ll start with McDowall, there were just four properties that settled in McDowall in October and the highest of which was the one in Gielgud Street for $747,000.
For Stafford Heights, there were 7 properties that settled on October, 24 available. The highest of which was $631, 500 and that was the one in Caratel Street and $620, 000 for that property in a Mott Street. In Stafford also 7 properties settled in October, 51 available and ranged from the high $860, 000 Gamelin Circuit, round to the low was $200 for though the units have settled and for Everton Park that wins the competition, 11 properties settled in October, 92 available. The most impressive one is that large plot of land in Pullen Road which settled $1,200,000 and I learn a lot of properties in the mid-fives up to 600, 000 thousand that settled in Everton Park. So that’s our market roundup for October. I hope to speak to you next month.
For more information or to arrange an inspection please call 07 3355 6845 or visit: www.madeleinehicks.com.au
Homesellers come out on top in 4213 as market surges ahead
HOUSE sellers in the 4213 postcode — which includes Mudgeeraba and Tallai — are reaping big profits, thanks to a surging property market.
According to CoreLogic’s Most Profitable report, 100 per cent of properties sold in Tallai and 97 per cent in Mudgeeraba made money compared to their last sale price.
In Tallai, the average gain was $264,167 while in Mudgeeraba it was $122,222. Neighbouring 4213 suburbs Bonogin and Worongary also appeared in the top 10 list.
The couple, who have three children, put their home on Hinterland Drive on the market after renovations, including a new kitchen, bedroom and open-plan living area.
“It was time to get a bigger house for the kids,” Mr King said. “The profit was enough to get that bigger house.”
Mr King said the house was on the market for a few weeks before selling, attracting eight offers before a deal was nailed down.
Mudgeeraba was popular because of its “country feel” while being close to the business hub of Robina.
“It’s a country town in the city,” he said. “People want to move to the country but still want the city close by.”
He said Mudgeeraba State School, which his children attended, was within walking distance while Robina Town Centre and Robina Hospital were a short drive away.
First National Mudgeeraba principal Murray Duthie, who is vice-president of the Mudgeeraba Chamber of Commerce, said proximity to Robina and the “unique” character of the area was fuelling demand for property.
“Demand is outstripping supply,” he said.
“Buyers are still mindful of price but the old adage of location, location, location tells the story.”
Mr Duthie said the chamber worked hard to promote the character of the area through heritage-style signs and other aspects of “Australiana”.
“We have always marketed Mudgeeraba as the most unique part of the Gold Coast not associated with water,” he said.
REIQ Gold Coast zone chair John Newlands said improving infrastructure and proximity to growing business hubs was driving the popularity of these suburbs.
“You can be in Robina Town Centre and within five minutes be in Mudgeeraba,” he said. “There is a number of major schools out there and shopping centres.”
Mr Newlands said the suburbs were not as remote as they once were.
“I lived in Mudgeeraba and Tallai and going into town was quite a trek,” he said. “The distance has not changed but the roads are better.”
Tallebudgera had the highest financial gain in the report, with sellers making on average $267,773 and 92 per cent of sales profitable. The report tracked resales over three months to August.
According to CoreLogic figures, the median sale price in Mudgeeraba rose 5.4 per cent for the 12 months to December to $525,000 while in Tallai it jumped 5.7 per cent to $697,500.
TOP 5 SUBURBS
SUBURB — AVERAGE GAIN:
— Tallai — $264,167
— Mudgeeraba — $122,222
— Highland Park — $137,710
— Burleigh Waters — $239,476
— Palm Beach — $183,089
Source: CoreLogic Most Profitable report, three months to August, 2015
Italian palace on The Sovereign Islands tops list of highest property sales in 2015
AN ITALIAN palace and two of the city’s most prestigious penthouses were among the year’s top property sales with Chinese buyers leading the charge.
The highest price paid was for the Palazzo di Venezia villa at The Sovereign Islands, which sold in January for $8.6 million to Chinese national Wei Zhang.
The ornate and opulent mansion is modelled on the centuries-old Venetian stately home, Villa Rotunda, and boasts an 8m copper dome, which is part of the terracotta roof, as well as arches, columns and curves.
In the same month former AFL player Tony Smith sold his beachfront home at Surf St, Mermaid Beach for $8.42 million to Brisbane entrepreneur Michael Dempsey.
It has 30m of frontage to the beach as well as five bedrooms, a lap pool and barbecue gazebo.
1-5 Surf St, Mermaid Beach sold for $8.42 million.
That was followed three months later by Melbournians Nabil and Roula Grege shelling out $8.4 million for a beachfront house down the road from Surf St at Albatross Ave, which was created through merging two villas into one.
The exclusive property has seven ensuited bedrooms, a home theatre, a gym, a 25m lap pool, an internal lift, and a plunge pool and spa on the rooftop entertaining terrace.
107 Albatross Ave, Mermaid Beach sold for $8.4 million
Two penthouses, one in Broadbeach and the other in Surfers Paradise, round out the top five sales of the year.
In March Hong Kong billionaire Tony Fung snapped up Soul’s penthouse for $7 million after an unusual marketing campaign by John Natoli and James Ledgerwood of McGrath Estate Agents.
The pair had the four-level apartment, which was the subject of a legal dispute over a 2006 $16.85 million sale contract, stripped back to a shell to present buyers as a blank canvas.
Mr Fung’s purchase marked his first foray into the residential market, after he bought mining magnate Nathan Tinkler’s Patinack Farm holdings at Canungra for $20.8 million.
The Soul penthouse in Surfers Paradise was stripped back to a shell for its sale.
In August Chinese buyer Yue Bai bought Oracle Tower One’s two-level penthouse in Broadbeach for $8 million, after it had spent years on and off the market.
The 1117sq m skyhome features four bedrooms, media room, study, and rooftop pool, spa and steam room as well as expansive views including the coastline, ocean and Hinterland.
The Oracle beachfront tower penthouse sold for $8 million.
Leading Gold Coast agents are pointing towards a better year for prestige in 2016 with the market recovery expected to boost all parts of the property sector.
Ray White Broadbeach principal Larry Malan said now that the bottom of the market had moved, many prestige buyers were getting into the market.
Mr Malan said he expected improving values at the lower end to feed into the luxury property market.
“We’ve had a really good December quarter based on the fact those big ticket items are moving,” he said.
“Those buyers have been more cautious … because they were waiting for other parts of the market to go up.”
Ray White Runaway Bay principal Ali Mian said a shortage of land at The Sovereign Islands was behind a spike in sales for established homes at the elite enclave.
“Prestige will hold up quite well next year,” he said.
“The Sovereign Islands because of a lack of land. We’re seeing premium prices because of that with lots of sales in excess of $4 million.” – New glossy property guide starts on Saturday.
TOP 5 SALES:
1) 38-40 Knightsbridge Pde East, The Sovereign Islands
Sale Price: $8.6 million
2) 1-5 Surf St, Mermaid Beach
Sale Price: $8.42 million
3) 107 Albatross Ave, Mermaid Beach
Sale Price: $8.4 million
4) 5001/1 Oracle Blvd, Broadbeach (Oracle penthouse)
Sale Price: $8 million
5) 7001/4-14 The Esplanade, Surfers Paradise (Soul penthouse)
Sale Price: $7 million
Source: CoreLogic, house and unit sales in 2015
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