Westpac Leased Southport Investment Sold for $5.42 Million

Westpac Leased Southport Investment Sold for $5.42 Million

A prominent building at Southport leased long term to the Westpac Group Ltd with redevelopment upside has been sold at auction by Ray White Commercial Gold Coast for $5.42 million.

The two-storey Westpac bank building at 23-25 Scarborough Street, Southport, was sold under the hammer to Kanvan Holdings Pty Ltd by Steven King of Ray White Commercial Gold Coast on behalf of a foreign-based owner for a yield of 6.85 per cent.

Steven King said the marketing campaign for the property, which is underpinned by the current seven year lease to Westpac, attracted 74 enquiries.

“We had eight registered bidders for the auction at the Gold Coast Turf Club and a great attendance,” Steven King said.

“Bidding started at $3.5 million and some keen competition from bidders resulted in the property being sold under the hammer for $5.42 million.”

Steven King said the Westpac building is in the heart of the Southport CBD and is returning net income of approximately $371,527 per annum.

“The Westpac lease also has a five year option that could see it carry through to 2025. All outgoings are paid by Westpac Bank, including land tax.”

Steven King said the building is located within the Southport priority development area (PDA), which is an unrestricted height and density area and offers future redevelopment opportunity (STCA).

“”The building is situated on a land area of 1,715 sqm and offers a net lettable area of 720 sqm,” he said. “There are also 22 on-site car parks available.”