Varsity One: Gold Coast office complex sells for $32.3m

A Gold Coast office building has sold for $32.3m in the biggest sale of its kind in nearly two years. WHAT IT MEANS FOR ITS FUTURE

A Gold Coast office building has sold for $32.3m in the biggest commercial sale of its kind in nearly two years.

Sydney-based fund manager Argus Property Partners sold the Varsity One complex to Acure Asset Management following an off-the-market campaign.

The sale of the A-grade building, formerly known as Bermuda Point, is the largest since 2023 and comes more than five years after Argus bought the complex for $25.1m in 2019 and amid a dramatic shortage in available office space in the suburb.

Argus executive director Nick Harris said it had done much to improve the building during its ownership.

The Varsity One building at Varsity Lakes has sold. Picture: Supplied

“Argus Property Partners implemented an active asset management strategy, including the refurbishment of the lobby and various tenancies, re-leasing of multiple floors within the building and ultimately achieving full occupancy of the building generating an uplift in the value of the asset of approximately 30 per cent,” he said.

The sale of Varsity One is the largest since the Wyndam Corporate Centre changed hands for $46.25m in June 2023.

It was sold via an expression of interest campaign run by Colliers’ Bede Blatchford and Steven King and CBRE’s Jack Morrison and Mark Witheriff.

Mr Blatchford said the sale “represents a building rate of $5334/sqm and a land rate of $4087/sqm.

“The sale of Varsity One represents one of the biggest Gold Coast office market transactions since 2023 amid pent-up demand from institutional investors looking for opportunities in the region,” he said.

“The Gold Coast office market is among the strongest in Australia, and while that creates significant opportunities for institutional investors, a lack of supply in both new and existing properties is a frustrating reality,” said Mr Blatchford.

Acure managing director Angelo Del Borrello said the company had plans for the building

“We are thrilled to have secured this prime Gold Coast asset which will provide a solid base for our latest investment trust,” he said.

“The Gold Coast office market has strong investment fundamentals, aided by very low office vacancy rates, and a robust near-term and longer-term outlook.”

Mr Morrison said the Varsity Lakes office market was historically tight, sitting at 4.4 per cent, below that of the Gold Coast average of 6.5 per cent.

“Quality properties are being tightly held and this was reflected in the significant national interest that this asset generated from prospective buyers through our campaign,” he said.

“Over the past year market activity in the office sector has been largely dominated by low-price-point offerings which are more abundant, so for the purchaser this is a significant opportunity to gain a foothold in one of the country’s most dynamic property markets.”

Originally published as Varsity One: Gold Coast office complex sells for $32.3m