Cavill Lane: Surfers Paradise shopping centre under Hilton sells for $31m
Experts say interest and confidence in Surfers Paradise is growing rapidly as the Gold Coast’s most famous suburb prepares to undergo a dramatic $100m revamp. FIND OUT MORE
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A prominent shopping centre in the heart of Surfers Paradise has sold for more than $31m.
Denwol Group has sold the Cavill Lane complex, which sits under the Hilton hotel, to the Property Factory and Boston Global in a deal brokered by agents Stonebridge Property Group’s Philip Gartland and Carl Molony.
The complex has 28 tenancies and is home to bar and nightclub Steampunk, as well as bank ANZ and The Coffee Club coffee shop.
Mr Gartland said there had been strong interest during the expression of interest campaign, which was launched earlier this year.
“Cavill Lane attracted widespread national and offshore interest, underscoring the strong appetite for well-located, income-producing retail assets in major tourism and population hubs.”
Stonebridge described Cavill Lane in its marketing material as “a trophy retail investment in the heart of the world class tourist destination”.
The complex has more than 4000 sqm of retail space spread across its tenancies and generates a net income of around $2.9m annually.
It also has a 113-space carpark which is leased to Secure Parking.
Stonebridge said its carpark had “a recent estimated building replacement cost of more than $149k per space”.
“The property is near fully leased with a 96 per cent occupancy by area and boasts a robust income profile with a weighted average lease expiry of 5.6 years and weighted average annual rent increases of 3.5 per cent,” the marketing material reads.
Mr Moloney said the Surfers Paradise property was considered a strong investment.
“The sale of Cavill Lane highlights continued investor confidence in Surfers Paradise retail,” Mr Molony said.
“With light rail access on its doorstep, an appealing tenancy mix, and future value-add potential, this asset represents a premium long-term investment.”
It comes as the Gold Coast City Council continues to develop its masterplan for central Surfers Paradise in a bid to revamp the suburb.
Among the ideas under consideration are a $100m revamp of Cavill Mall which would extend it by 100m.
Council’s concept plans say the revitalisation around The Esplanade will “blur the edge between Cavill Mall and the Beach, establishing a new experience economy”.
“The Mall will be extended by 100m to Surfers Paradise Boulevard by shifting the existing vehicle lane north; and creating a central spine that connects the beach to Cavill Ave,” the plans read.
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Originally published as Cavill Lane: Surfers Paradise shopping centre under Hilton sells for $31m
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