K2 Private in the News – Pacific Square snapped up for $20.9m in Marquette value play

Financial Review website - by Matthew Cranston

The below is from an article on the Financial Review website by Matthew Cranston dated 12 October 2016, at 4:55pm:

‘Marquette Properties has purchased the Pacific Square retail complex near AMP Capital’s massive Pacific Fair Shopping Centre on the Gold Coast for $20.9 million.

The Pacific Square property, while serving as a strong income asset for its new owners, is also one of the largest development sites on the Gold Coast and could offer an ideal residential property play into the future.

The deal, which was brokered in an off market transaction through K2 Private’s Stuart Moody, represented a passing yield of 7.2 per cent.

The single level retail and office asset at Mermaid Beach has 7355 square metres of net lettable area on a site of 17,300 square metres with 240 carparks.

The asset is 100 per cent leased to tenants who have been at the centre for an average tenure of 10 years.

Tenants include the Queensland state government, Supercheap Auto and Snap Fitness.

Pacific Square is Marquette’s fourth retail acquisition in the last six months alongside the St Lucia Village in St Lucia, Brisbane, for $10.2 million, Festival Towers in Brisbane CBD for $22.7 million and Bushland Beach Plaza in Townsville for $5.5 million.

Marquette Properties’ managing director Toby Lewis said the new property would allow his team to add significant value in the future.

“As well as being a stable investment with a significant rental reversion, the asset has enormous future development upside,” Mr Lewis said.

“We believe the current day development value and replacement cost value exceed the investment value price we have acquired the asset for.

“The asset has excellent retail fundamentals and is consistent with our investment philosophy of buying assets that we can drastically change the value of and be a ‘pricemaker’ at exit.”

Mr Moody said the property, which is zoned for eight levels of residential, was a prized asset.

“We see it as an awesome investment because it’s one of the largest development plays on the Gold Coast,” he said.’

About K2 Private

K2 Private is a boutique commercial Real Estate Service provider focusing on the private owners in South East Queensland. We aim to bring a fully integrated Property Management, Accounting and Transaction Co Ordination service to the private families of Queensland. K2 Private is a wholly owned subsidiary of Keystone Private – Queensland’s leading Multi-Family Office.

 

For further details please contact :-

Stuart Moody

Director – Property

0421 323 051