Alceon Group Set To Expand Acuity Business Park After Securing $80 Million Sale Of Latest Stage
13 July 2022
Alceon Queensland is cashing in on an extended under-investment in commercial office property on the Gold Coast, with plans for a further 5,000sqm expansion of its $180M Acuity Business Park at Robina after recently securing the sale of stage 2 and 3 of the development.
Alceon’s move follows the acquisition by two of Charter Hall’s managed funds: the ASX-listed Charter Hall Social Infrastructure REIT and Charter Hall Direct Long WALE Fund. The development comprises two buildings occupied by TAFE Queensland and Wise Medical on long-term leases.
According to Alceon’s Todd Pepper, the Gold Coast remains ripe for new commercial property developments, including in the social infrastructure space, as the market continues to outperform most capital cities.
“The Gold Coast has had a prolonged period of experiencing one of the highest vacancy rates in the country and, as a result, there has been a dearth of new quality office developments for some time,” said Mr Pepper.
“We have seen that position change over the past few years which is reflected in sustained demand we have witnessed for quality product.”
Alceon’s confidence in the Gold Coast market, and the Robina precinct in particular, has led the developer to progress plans for a new office tower at Acuity Business Park, which is located on the corner of Robina Town Centre Drive and Laver Drive. The expansion will deliver a further 5,000 square metres of quality A grade accommodation into a market which has limited supply.
“The success of Acuity Business Park has been founded on a ‘build it and they will come’ approach,” said Mr Pepper. “Once commercial occupiers have the chance to view the quality of the product, and the rents being sought, we receive numerous tenant enquiries from our marketing mediums.
“The calibre of the most recent tenants we have been able to secure for our latest stage, namely Queensland TAFE Qld and Wise Medical, reflects the adaptability of both the design of the buildings that we develop, as well as the flexibility of land-use planning for these types of suburban environments.”
The Queensland office of Alceon has developed an extensive portfolio of suburban business parks in south-east Queensland since 2013 in locations that also include Hamilton, Eight Mile Plains, Murarrie, Spring Hill, Albion, Woolloongabba and Bowen Hills. The group has secured more than 55,000sqm of commercial office leases since 2011.
Alceon Qld continues to explore new opportunities throughout the region, with the Gold Coast a key development target.
Acuity Business Park is the first major premium commercial project to be constructed on the Gold Coast in the past decade. It is being developed on the site formerly earmarked for the new City of Gold Coast administration building.
The site benefits from its position adjacent to Robina train station and the interconnecting bus network, as well as the employment nodes of the nearby Robina Town Centre, and public and private hospitals.
Prior to developing Acuity Business Park, in 2018 Alceon completed the Brooklyn mixed-use development at Varsity Lakes which comprised 88 apartments and 800sqm of ground-level commercial space.
“Our confidence in the Gold Coast at the time was supported by an economy that had reached a point of being self-sustainable, with a population of in excess of 500,000 people and growing at the fastest rate in the country,” said Mr Pepper.
“There was a clear need back then for five-star quality accommodation in suburban locations to better service this community.
“The quality of tenants we have been able to attract to our Gold Coast developments supports this strategy. The Gold Coast also has a significant cost of living advantage, as well as an occupancy cost of business advantage. Now, with improved remote access capabilities, the Gold Coast poses a compelling case for business to locate in the city.”
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