The existing building erected on the site is known as The Conservatory which is a two level retail and commercial property located next door to the Pullman Hotel and comprising a through-street arcade link between Abbott and Lake Streets, Cairns.
The property is leased short-term to a variety of tenants and produces approximately $377,059* net passing income and $425,889* full leased net income. It is likely tenants would pay higher rent if they were able to extend their lease tenure, however, as the building is located on a prime 3,091 m2* development site with code assessible capacity for 16 storeys, the vendors have restricted lease terms to enable future development.
Consequently, the opportunity exists;
for an investor to extend leases and modify the building to create an increased income revenue, or
for a developer to obtain vacant possession within 12 months from settlement or at some future date and develop the site in the short term.
Given the prime location within the Cairns CBD, the opportunity exists for several development uses, however, Architects have been engaged to produce rough development schemes capable under planning guidelines and these are available upon request.
Cairns is a recognised premier tourism destination which has experienced significant growth over recent decades. The Cairns hotel market is currently enjoying record trading levels and achieved the highest RevPAR growth in Australia in 2014, with growth forecast to continue into the future. Increased demand has seen strong occupancy levels in existing accommodation facilities and there is very limited supply in the development pipeline. As a result we believe a hotel/serviced apartment project is the most suitable redevelopment use for the site.