50 Cavill Avenue tower set to go for $105m in sale on Gold Coast

IN just two years, the Gold Coast’s original tower of power has more than doubled in value, with price expectations expected to exceed $100m.

50 Cavill Ave, Surfers Paradise

THE Gold Coast’s original tower of power — 50 Cavill Ave — has hit the market with price expectations topping $100 million.

That figure would be more than double the $48.75 million that owner GDI Property Group paid in 2016.

Since purchasing the property, GDI has completed a $10-million refurbishment program, which included new lifts, airconditioning and bike storage facilities.

50 Cavill Avenue office tower at Surfers Paradise

The renovations have helped to attract new tenants including Ernst Body Corporate Management, which recently took out a top floor lease, and push the occupancy level above 97 per cent.

50 Cavill Ave has a net lettable are of 16,661sq m spread across 22 levels.

Tenants include Mantra Group, Regus, Nine Network, Ray White Surfers Paradise Group, Bell Potter and PwC.

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Inside 50 Cavill Ave, Surfers Paradise

The iconic building is being marketed. Picture: Jerad Williams

CBRE’s Scott Gray-Spencer, Jonathan O’Brien, Kyle Youngson and Steve Clark have been appointed to market the building via an expressions-of-interest campaign that closes on November 13.

Mr O’Brien said given the asset would be strong sought after due to limited supply of a-grade commercial space on the Gold Coast market and with no new significant projects in the pipeline.

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“50 Cavill boasts lower leasing incentives than other major centres as well as rental upside given many tenancies are still at below market rates,” Mr O’Brien said.

“The Gold Coast offers investors a more compelling value proposition compared to other eastern seaboard centres such as Sydney and Melbourne, where yield compression is already nearing its peak.”

GDI has seen the value of the building grow under its stewardship.

Last year it was valued at $88.10 million and the Sydney company expects that to be exceeded when it is revalued at the end of this year.