Council purchases Gold Coast Corporate Centre at Bundall at cost of $117m
Council’s decision to spend $117 million on a Bundall office block is expected to radically change future plans for the Gold Coast’s CBD. FULL DETAILS
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Council’s surprise decision to spend $117 million on a Bundall office block came after officers warned plans to build a ‘tower of power’ in Southport could pose “significant financial risks”.
In an exclusive report the Bulletin revealed on Monday that council was the purchaser of the Gold Coast Corporate Centre, which stands on a prominent corner site opposite its Evandale campus.
It makes council one of the city’s biggest property players, with the future puzzle including its Miami depot being converted to a film production precinct, Bundall a staffing base and its ageing Nerang offices sold off for private housing.
Mayor Tom Tate said the purchase would help consolidate council’s operations.
“Having staff, contractors and councillors commuting between Bundall and Nerang for 30 years since amalgamation has been anything but ideal and I think it shows the current council is prepared to make hard decisions that benefit the City’s operations,” he said.
“Of course, the existing tenants in the Corporate Centre, and the (next door) Wyndham building that we recently purchased, are highly valued and there is no intention for council to take space in either building at this stage.
“The Gold Coast office accommodation market has been buoyant in recent years and current returns of seven per cent provide the City with an excellent investment as well as flexibility for the future.”
Asked whether staffers and offices would also be moved from Evandale to the Corporate Centre in coming years, Mayor Tom Tate said he remained “open minded”.
“That said, it has always been my personal view that the entire Evandale precinct should be set aside for cultural purposes, public open space and suitable commercial activity that augments arts and culture in the city,” he said.
“The current Sunday Markets that are so popular with our residents is a good example and really activates the site well.”
Council is yet to release its ‘Long Term Accommodation Strategy’ for its workforce, but confidential advice to councillors revealed:
* Positioning council as a major anchor tenant in Southport was unlikely to address land banking issues in the area or stimulate high-value professional services development.
* The high cost of constructing high-rise commercial and mixed-use towers made projects such as the ‘tower of power’ “financially unfeasible in the short to medium term”.
* Building such a project in Southport would further strain existing infrastructure, especially the local road network.
* A new administrative centre “will not be a quick fix for transforming the area into a CBD”.
Council officers also said moving to Southport could pose “significant financial risks”.
They instead recommended investing in community facilities in Southport and waiting at least 15 years before becoming an “anchor” investor in the CBD.
A council source said: “The Southport accommodation plan would be a medium to long term thing. Bringing in 1500 public servants – a lot of them work from home now – on a Saturday and a Sunday it would be a ghost town.”
The City’s focus instead will be on building the Gold Coast Arena before the 2032 Olympics.
“It’s a no-brainer. If we get the stadium, we will get an NBL team, playing on weekdays and weekends,” the source said.
COUNCIL’S ‘LANDMARK’ TRANSACTION
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 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.”
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.
“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.
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.
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.”
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