Council purchases Gold Coast Corporate Centre at Bundall at cost of $117m

Council has spent $117m to purchase a prime Gold Coast office block, with Mayor Tom Tate saying it was a ‘carefully considered exception’ amid budget tightening. FULL DETAILS

The Gold Coast Corporate Centre at Bundall. Picture: Tim Marsden

One of the city’s best-known office towers has been sold to the Gold Coast City Council in a “landmark” transaction.

Ratepayers have forked out more than $117m – including stamp duty and taxes – for the 40-year-old Gold Coast Corporate Centre at Bundall which has been described as “one of the most significant long-term investments in the city’s history”.

The sale, for a negotiated price of $109m in a deal brokered by CBRE, is the largest commercial property transaction on the Gold Coast since 2020.

The decision, one of the biggest budget outlays that the council has undertaken in recent years, was decided on by city leaders behind closed doors recently.

Mayor Tom Tate. Picture Glenn Hampson

Mayor Tom Tate said the sale was “strongly supported by the Invest Gold Coast Board” and would be a “favourable short to midterm financial investment for the city”.

“This is a fantastic outcome for the people of the Gold Coast,” he said.

“We have secured a key piece of strategic real estate that not only safeguards the Council’s long-term accommodation needs but also delivers strong, ongoing financial returns that will benefit our community for years to come.

“This is about future-proofing the city’s operational needs and strengthening our investment portfolio in one of the most constrained and highly sought-after commercial markets in the country.”

The Gold Coast Corporate Centre at Bundall. Photo: Jerad Williams

Council said in a statement the purchase was “part of a long-term strategy to secure the city’s “accommodation needs, strengthen its property investment portfolio, and deliver strong commercial returns for the benefit of Gold Coast residents”.

The 17-storey A-grade office building currently generates more than $6m in net revenue for its owners through income from its 37 tenants, which are expected to remain in place.

Among the current tenants are KPMG, Findex, Hickey Lawyers and the Commonwealth Bank of Australia

However council says control of the building will secure “long-term office accommodation needs, reducing future leasing costs and consolidating Council operations”.

“It is a self-funding investment that delivers ongoing revenue and strengthens the city’s financial position,” a council statement on the project reads.

“The commercial returns and property value growth make it a sound, forward-looking decision.

Gold Coast Corporate Centre at Bundall has been sold to the Gold Coast City Council. Picture: Supplied

“This acquisition complements the Council’s earlier purchase of the Wyndham Building and furthers its long-term strategy to consolidate city operations within the Bundall precinct, reducing fragmentation and driving operational efficiencies.

Mr Tate defended the significant spend, saying the building had been independently valued and was an “investment in the future” which “aligns squarely with the Council’s broader commitment to responsible, long-term financial stewardship”.

“While we are tightening the belt across all areas of the budget in response to cost-of-living pressures, this investment is a carefully considered exception – it delivers a strong commercial return and positions the city for sustained growth and resilience,” he said.

Council previously bought the neighbouring Wydnam tower from fund management company CorVal for $46.25m in 2023.

The city now owns both towers, plus the Waterside East and West towers it bought in 2012 for $32.5m.

Gold Coast City Council CEO Tim Baker (pictured left) with Will Hodgman, the former Tasmanian Premier who is heading up Invest Gold Coast.

Invest Gold Coast board chairman and former Tasmanian premier Will Hodgman backed the decision.

“This is exactly the kind of forward-thinking, strategic investment that positions the Gold Coast for long-term prosperity,” he said.

“The board was unanimous in its support, recognising the strong commercial case and the broader economic and civic benefits this acquisition will deliver.”

CorVAL bought both towers for $89m in 2017 from Cromwell.

Mark Witheriff

CBRE agents Mark Witheriff and Jack Morrison negotiated the sale.

“This transaction represents the largest office transaction ever on the Gold Coast and is testament to the City of Gold Coast’s forward thinking in securing a key office investment asset with a huge surplus land holding, allowing for a multitude of future uses,” said Mr Witheriff.

“CorVal has been an extremely active manager of the asset over its period of ownership, taking the building from carrying long term 20-30 per cent vacancy to effectively fully occupied.

“The Gold Coast office market continues to be one of the strongest performing in the country with low single digit vacancy and strong year on year rent growth.

“With construction prices continuing to make new office development extremely difficult and creating a lack of supply, this trend is set to continue in the medium term.”   

Originally published as Council purchases Gold Coast Corporate Centre at Bundall at cost of $117m