EG Settles On Gold Coast Retail Asset Amidst Global Pandemic Crisis1 April 2020
EG, one of Australia’s leading real estate fund managers, has settled on the sale of the Gold Coast’s iconic Circle on Cavill retail centre for $61.8 million. The successful purchaser, Macau businessman Loi Keong Kuong, secured the property off-market after a late 2019 sale campaign.
Located in the heart of one of Australia’s busiest tourism destinations, Surfers Paradise, Circle on Cavill has recently undergone extensive capital works and was the subject of a leasing program to refocus the facility towards customer experience and entertainment. The landmark mixed-use development now features over 12,364 sqm of GLA across entertainment, dining health and convenience-based retail in addition to high-quality office accommodation.
The physical works undertaken by EG have greatly transformed the shopping experience to a day and night destination with the centre now one of the Gold Coast’s pre-eminent CBD retail destinations. EG first put Circle on Cavill on the market in 2018 after buying it in 2010 in a receivership deal valued at close to $40 million.
The sale to Loi Keong Kuong provides a passing yield of 8.8%, a market cap rate of 7.75% and a capital value of $4,998/sqm of NLA.
“We are very pleased with this result and also to see evidence that transactions of high-quality real estate are still completing in this cautionary environment” said Fund Manager, Daniel Farley.
The completion of the G: Link light rail system and Cavill Avenue Station serves the heart of Circle on Cavill. Several bus routes and more than 500 underground parking spots are easily accessible along the neighbouring Gold Coast Highway making the precinct highly accessible.
The transaction was brokered by JLL and McVay Real Estate.