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Case Study Investment Services: 34-36 Kortum Drive, Burleigh Heads

3436 Kortum Drive_IMG

Delivering memorable service and enduring value for our clients

Client: Cheoy Lee Yachts Pty Ltd
Sale price: $9,500,000
Yield: 7.7%
Total area: 6,978 sqm* (Site Area) 421sqm* NLA
Asset type: Large Format Retail Investment

Challenge

The major tenant’s lease had expired, and a smaller footprint had been requested within the building. Substantial costs were associated with splitting up the lease areas, and additional fire cladding regulation requirements had identified that the building’s upper level existing long-term tenant could no longer occupy the building without cladding rectification works being completed. The major costs associated, and tenant lease uncertainty was a source of concern for the owner, and he was reluctant to invest more capital into the building at the time. 

Strategy

Complexities associated with the building were likely to result in a drawn-out sale process and the seller required a shorter-term outcome, Auction was recommended, and the strategy was to:

  • Disclose all cladding requirements and tenant requirements to prospective buyers. 
  • Contractor quotes were made available for all issues associated with the cladding rectification requirements and the splitting of lease areas to fulfil the major tenants reduced footprint requirement 
  • Our leasing division provided detailed advice over lease rates for the area and an overview of current tenant demand, providing a level of comfort to prospective buyers 
  • Indicative fully leased income estimates were provided to showcase the buildings potential income opportunities upon works completion.

Results

Throughout the campaign the property attracted over 40 enquiries with multiple interested parties vying for the property prior to auction. On auction day, there were multiple bidders with the final price exceeded the client’s expectations and a successful settlement being achieved within 60 days.   

Testimonial 

"I’d just like to congratulate both Pat Cavanagh and Steven King on the professional manner in which they conducted themselves during the sale of our property. The sale campaign was managed with the utmost professionalism and diligence, providing us with a variety of interested parties. Your tailored campaign strategy combined with your consistent determination and detailed updates throughout the entire process ultimately delivered a sale price above our expectations."

Adrian Alle
Cheoy Lee Yachts Pty Ltd


Related Experts

Pat Cavanagh

Director I Industrial

Industrial

Gold Coast

Commencing my commercial agency career in 2000 on the Gold Coast, then joining Colliers International in 2004 I quickly established a specialisation for industrial property transactions within the Gold Coast market.

So successful was this untapped area, I made a name for myself as the only industrial specialist within this market, to which other agencies tried to emulate.

I have since become a Director in the Industrial Division at Colliers International Gold Coast.
I work with existing industrial owners, corporate enterprises, investors, tenants and all sectors of industrial real estate. I have been responsible for the majority of the largest industrial transactions across the Gold Coast over the past 19 years.

View Expert

Steven King

Director in Charge | Gold Coast

Director | Investment Services

Gold Coast

As the Director in Charge of the Gold Coast office, Steven is responsible for the continued success and growth of an award-winning team across multiple service lines. As part of his dual-role, Steven also represents Colliers International as the Director of Investment Services in a transactional based sales management role.

Working within our national platform, we share knowledge and have a collective commitment to deliver the absolute best results for our clients. 
In 2018, our Gold Coast office received the prestigious Real Estate Institute of Queensland ('REIQ') Commercial Agency of the Year Award.

Steven specialises in the marketing and sale of high profile commercial assets and with over 17 year’s experience, he has negotiated more than $500 million in local property sales. Steven offers an unrivalled track record in commercial sales and his in-depth knowledge and expertise of the local commercial market is second to none. Steven provides clients with a high level of service that extends beyond a traditional sales appointment by utilising both innovative and effective marketing strategies.  

Previously Steven has been honoured to receive the REIQ Commercial Salesperson of the Year Award.

View Expert