Varsity Investment Fund

Varsity One
1 Lake Orr Drive, Varsity Lakes QLD

Property Description

Varsity One is an A-grade commercial office building with a total net lettable area of 6,114sqm and 197 car-parking spaces on a 7,916sqm site located at 1 Lake Orr Drive, Varsity Lakes, Queensland. The Property was built in 2008 and offers a range of accommodation options across 5 levels, in addition to providing views across Lake Orr, and in close proximity to Bond University. The property is currently leased to a range of professional services firms as well as a number of medical and health related organisations.

The property is currently 88.1% occupied (by area) and has a WALE of 2.5yrs.

Investment Rationale

The acquisition of Varsity One represented an opportunity to acquire off-market a well-located, A-grade office building, providing exposure to the strongly performing Gold Coast office market. The acquisition price provided Investors with strong risk-adjusted returns with the potential to add-value through active management and tenant re-mixing.

The Property was recently valued at $28.0m, up from $25.4m at the time of acquisition.

Key Fund Stats

Fund StatusFund Open
Acquisition Price$24.75m (March 2019)
Equity Raised$14.25m
Current Distribution Yield (% p.a.)10.5% p.a. (paid quarterly)
Key Tenants Classic Holidays, Telstra, South Coast Radiology