Acquisitive fund manager drops $32m in Queensland
EXCLUSIVE
Acure Asset Management is quietly buying the biggest building at Varsity Lakes’ Bermuda Point development.
For a single asset trust now seeking wholesale investors, the Perth based group is paying $32.25 million – an ungeared nine per cent passing yield – for the four level office, Varsity One.
Sydney fund manager Argus Property Partners is the seller: it picked up 1 Lake Orr Drive five years ago for $25.4m – a 7.41 per cent return.
The building contributed to over a quarter of the value of its Gold Coast portfolio.
Acure intends to hold it in the Varsity One Trust.
In calling for investors to back it $21.5m, the manager is forecasting an initial 8.25pc annual distribution paid monthly, balancing to 8.75pc for an expected five year hold term.
The internal rate of return after fees is expected to circle 12pc pa, it added.
The deal comes three weeks since we reported Acure was buying its maiden New South Wales asset – a Quest at Dubbo. Costing $17m, that is set for the Acure Hospitality Trust which holds three other assets – all in Perth.
Acure acquires again
Overlooking Lake Orr – where it is opposite Bond University, Acure’s latest asset was completed in 2008 (story continues below).
Telstra, Classic Holidays and South Coast Radiology occupy parts of the 6059 square metre office component.
There is also a 55 sqm ground floor retail tenancy.
The asset is fully leased.
“The Gold Coast has been the beneficiary of significant net migration in particular following the COVID pandemic and is seeing the benefit of a strong local economy with favourable dynamics and a positive outlook,” the buyer said.
Bermuda Point was developed by Sydney’s Shanahan family, via Astoria Group, which paid Delfin $2.735m for the land – 1.1 hectares.
Other commercial buildings have been developed, strata titled and sold down.
Elsewhere on the Gold Coast, Argus own the Metro Market at Biggera Waters and commercial components of Hope Island Central.
Varsity Lakes is about 11 kilometres south of Surfers Paradise.
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