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11 Feb 2022

$120m Gold Coast Tower Plan Divulged

$120m Gold Coast Tower Plan Divulged

"While our immediate focus was on helping to enhance the King Street precinct, exemplar initiatives like these will be vital in attracting employees back to the city and are critical to the CBD's resurgence."

After receiving planning approval last year, Mirvac plans to build a similar A-grade office tower nearby.

Mirvac plans to construct a 31-story office skyscraper at 383 La Trobe Street, where the Australian Federal Police now resides.

V-$500 Leader's million mixed-use complex at 600 Lonsdale Street has also received permission.

Its 42-story structure will have 24,400 square meters of A-grade office space, as well as a 280-key boutique hotel, amenities, and retail space.

"Burleigh Heads is without a doubt Australia's hottest market right now, and it's a location we have to be in," Gurner Group CEO Tim Gurner said.

"We're extremely happy to be partnering with MaxCap on such a significant acquisition in 2022 as we continue to extend our Queensland presence on the Gold Coast—a it's market we believe in and one that will continue to play an essential role in our company's future."

The property is next to a 2024sq m double-block at 1873-1875 Gold Coast Highway that Morris Property Group purchased for $13 million late last year, suggesting a land pricing of roughly $6400 per square metre.

Both holdings were sold by Antonio Mercuri of GV Property Group, who has sold 30 development plots on the Gold Coast in the last year, with prices ranging from $2.2 million to $27 million.

The transactions are projected to generate a $2 billion development pipeline of residential and commercial projects, including 1700 flats between Broadbeach and Coolangatta.

"Demand for the Gold Coast is still robust, and many interstate developers are eager to get a foot in the door," Mercuri said.

"Having a developer of Gurner's caliber add their name to the mix just adds to it."

"The foundations have been laid for the next few years... There is no worry in the market of a full cooling off, but rather a leveling off.

"Getting development sites is becoming increasingly difficult... While I believe there is always some room for negotiation in terms of cost, there is always a point at which developers can no longer pay because it becomes too hazardous."

Gurner first entered the Gold Coast market in 2019, when it purchased a whole Surfers Paradise block from Ralan Group, which had previously been authorized for 1000 units.

In a $1.25 billion joint venture with investment firm Wingate, it plans to construct four skyscrapers with a total height of 57 stories on the 112 Ferny Avenue site.

The Gold Coast City Council is anticipated to receive plans for the Burleigh property in the coming months.

The joint venture complied with MaxCap's strategy of "partnering with only the finest grade developers in the Australian market," according to executive director Brae Sokolski.

"We have a strong belief in the Gold Coast market's long-term fundamentals, and this project marks another significant strategic investment by MaxCap in the region," he added.