EMERGING Gold Coast gas explorer Icon Energy has snared City Pacific's Broadbeach headquarters in a bargain-basement deal worth $9.5 million.
The purchase is set to bring the long-dormant corporate space back to life within a month once Icon relocates from leased premises at Robina.
City Pacific vacated the premises, fronting TE Peters Drive, in August after the property financier was placed in liquidation following a year of corporate turmoil.
The property comprises two A-grade office buildings developed by City Pacific in 2006 for an estimated book value then of about $15 million.
The site alone cost City Pacific $5.5 million to acquire from Jupiters in 2004 and the property was expected to sell at auction yesterday for between $10 million and $12 million.
Icon managing director Ray James said the acquisition was an 'unprecedented opportunity that I will never see again in my lifetime'.
"We would not normally buy a building, but when interest payments are half of what we pay in rent it makes sense," he said.
"We have outgrown our (rented) space at Robina Town Centre and with expansion and development of our assets we are increasing our staff and needed a new office.
"It is exactly what we wanted -- at a very good price -- and we got it for about half of the building cost.
"It is an absolute bargain. We are thrilled to bits."
The property, at 2-4 Miami Key, was taken to auction after receiver-managers Daniel Bryant, Ian Carson and Grant Sparks, of PPB, were appointed to City Pacific on August 3.
Icon, which has bought the property in partnership with another undisclosed entity, will move into the former City Pacific headquarters, the 1300sq m building fronting the canal.
Icon's unnamed partner will occupy the adjoining 1592sq m building, which is about half leased to three businesses including St George Bank, property and construction consultancy Rider Levett Bucknall and Advice Solutions.
Icon Energy is expected to boost its staff base of 22 to about 50 in the next 18 months as it edges closer to becoming a major Queensland producer of coalseam gas.
"We want to get the keys to start moving in straight away but we have to wait for settlement. We will move in within 30 days," said Mr James.
"There is no work to be done.
"The way City Pacific occupied the building is just about the same way we would use it.
"It is more or less a walk-in, walk-out deal. It is going to save us a lot of money."
ICN Price at posting:
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