CLARENCE Property Group has set a June release date for the second tranche of refurbished suites at its Lakehouse Corporate Space property at Robina in wake of a near sellout of first-release spaces. The company, in recent weeks, has cut ties with six suites for more than $3 million.
The sales lift to 16 the number of suites sold, leaving only two of the 18 initial-release spaces available. Lakehouse comprises 36 suites and is undergoing an $8 million modernisation.
Clarence Property said a Coast investment group three weeks ago purchased for $3 million five adjoining suites that deliver an 816sq m space. The properties have been acquired with five-year leases in place to consultancies RPS and Cunningham Lindsey. RPS provides solutions in energy, mining, infrastructure, urban growth, and natural resource management.
Cunningham Lindsey provides loss adjustment, claims management and risk solutions to insurers, brokers and risk managers. The five-title portfolio is expected to deliver an 8 percent yield, based on Lakehouse Corporate Space’s average net rental rate of $300/sq m. The sixth suite, a 157sq m space, has been acquired by tenant Bob Wood Cruise Group which operates from a 160sq m suite that was acquired in December 2015.
The second tenancy almost doubles the initial space and lifts BWCG’s investment in Lakeside to $1.089 million. BWCG organises shore excursions and land programs for cruise lines. The sales were negotiated by Knight Frank Gold Coast’s Tania Moore, who said Lakehouse has had an impressive start to the year, “reflective of the quality of the development and calibre of the investment opportunity on offer”.
The remaining two initial-release tenancies comprise 177sq m and 224sq m spaces priced below $600,000. Clarence Property managing director Peter Fahey said more than half the Lakehouse sales have been to parties who secured more than one space. “Investors are impressed by the quality of the tenants and yields, while owner-occupiers chose Lakehouse for its location and facilities.”