Exceed Capital Secures Landmark Varsity Lakes Office Asset in Strategic $12.6M Acquisition
May 7, 2025
Exceed Capital Secures Landmark Varsity Lakes Office Asset in Strategic $12.6M Acquisition
Gold Coast, QLD – March 12, 2021
Exceed Capital has taken a bold step forward in its commercial real estate strategy with the acquisition of a prominent A-grade office building at 154 Varsity Parade, Varsity Lakes, on Queensland’s Gold Coast. Purchased for $12.6 million from ASX-listed Garda Property Group, the building represents the Brisbane-based investment manager’s first foray into office assets—a milestone that signals a new chapter of growth and diversification
Strategic Repositioning to Unlock Value
Currently 55% leased and anchored by Serco Australia, a multinational government services provider, the building offers a significant opportunity for value enhancement. Exceed Capital plans to reposition the property through targeted upgrades to both the interior and exterior.
“Our intention is to enhance the tenant experience and unlock the building’s full leasing potential,” said Vaughan Hayne, Managing Director of Exceed Capital. “We’re specifically targeting the vacant top-floor space—around 1,200sqm—which will be divided into three to four smaller tenancies. These spaces will be delivered with speculative fitouts to attract quality tenants seeking ready-to-occupy offices.”
Hayne noted that local market research revealed a shortage of high-quality, fitted-out office space in the Varsity Lakes area, highlighting the opportunity to deliver move-in-ready spaces with minimal disruption to tenants' business operations.
Key Building Highlights
- Location: 154 Varsity Parade, Varsity Lakes, QLD
- Net Lettable Area: 3,994 sqm
- Site Area: 3,913 sqm
- Parking: 140 on-site car parks (ratio of 1.28)
- NABERS Rating: 5.5 stars
- Notable Tenants: Serco Australia, EMF Griffith, and a soon-to-be-signed health and wellness tenant (HOA for 350 sqm)
Developed by Delfin/Lendlease in 2008, the property was originally part of an Opus Capital fund before being transitioned to Garda Capital. It was brought to market by CBRE’s Mark Witheriff, with the sale reflecting a rate of $3,800/sqm—a price Exceed Capital views as highly competitive.
“We see strong upside potential. Our insurance valuation estimates the building’s replacement cost at over $17.5 million, excluding the value of the land,” Hayne added. “That kind of margin gives us a significant buffer and opportunity to grow returns.”
Introducing the VL Property Trust
The building will be held in Exceed’s VL Property Trust, where investors can expect an initial yield of 6%, projected to increase to 9% upon full occupancy. While the offer is not yet fully subscribed, the asset is already attracting strong interest from investors seeking income-producing property with upside potential.
“As conservative investors, we only acquire properties we believe in—and we co-invest alongside our clients,” said Hayne. “We view this Varsity Lakes acquisition not only as a quality asset but as a strategic entry point into the commercial office sector.”
Looking Ahead
As Exceed Capital continues to evolve its real estate strategy, the repositioning of 154 Varsity Parade stands as a template for value-add investment. With strong fundamentals, growing tenant demand, and thoughtful asset management, the project is poised to deliver long-term benefits for both tenants and investors alike.
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