Listed company MFS Diversified Group has divested the distinctive Witheriff Nyst building in Southport, selling it for $3.3 million in an off market deal.

The property is at 13 Nerang Street, in the centre of the Southport Mall and opposite the northern entry to Australia Fair shopping centre.

The two-level building dates from the 1960's and was significantly refurbished in 1998, three years after its purchase by companies associated with the law firm Witheriff Nyst, which occupied the premises.

Designed by Phillip Buchannan, of Burleigh Design, the makeover involved an upgrade to the facade, conversion of the ground-floor retail area into commercial space, modernisation of the interior and rebuilding the rear of the premises.

McLaughlins Property Investment Syndiate acquired the property for $2.15 million in 1999 and placed it under the management of Perpetual Trustee Company with a book value of just over $3 million in 2004.

Law firm Minter Ellison leased the property for a while before moving to Varsity Lakes in mid-2005.

MFS Diversified placed the holding on the market last year in an offers to purchase campaign that did not yield a sale.

The building has a net lettable area of 800sqm and sits on a 417sqm site.

The site allows buildings up to 40 storeys, offering longer term redevelopment potential, particularly through amalagamation.

A law firm now leases the building.

MFS Diversified general manager property investment Lynn-Maree Travers said the sale of 13 Nerang Street was in line with the group's strategy to divest non-core assets under $10 million.

The group holds more thatn 6100 housing lots with an estimated gross development value of $1.6 billion.

Gold Cost Bulletin
Friday September 27, 2007