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Brisbane Northshore Building Snapped Up for $20m

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Brisbane Northshore Building Snapped Up for $20m

Investment giant Centuria has purchased a recently built commercial building for $19.74 million on a 7 per cent yield in Northshore Hamilton.

Developed by Alceon Graystone in April last year, the three-level A-grade office building sits within the Brisbane Technology Park Northshore office precinct which spans 304 hectares of riverfront, located six-kilometres from Brisbane’s CBD.

The property fund purchased the newly built office, at 381 Macarthur Avenue, in a move that marks its first direct property acquisition.

Centuria head of real estate Jason Huljich said the purchase is in line with the fund’s strategy.

“We have always intended to acquire direct assets for the Fund, and 381 Macarthur Avenue is a high-quality, well-located asset with financially strong tenants,” he said.

Work kicked off transforming the expansive site of state-owned industrial port into a $5 billion mixed-use precinct in 2015, with the site said to be Queensland’s largest waterfront urban renewal precinct.

The next phase of commercial development to kick off will include four additional office developments spanning 16,000sq m, along with plans for an integrated health and medical precinct.

Brisbane demand

Huljich anticipates increasing investor demand in South East Queensland.

“The fund’s exposure to QLD follows our view that Brisbane office markets are steadily improving. In the last half we’ve seen yield compression, vacancy rates at five-year-lows, and rising demand for prime office – trends we expect to continue,” he said.

Centuria’s newly acquired 2,847sq m asset has a 5.1-year WALE. Colliers Sam Biggins brokered the deal, with settlement expected by the end of May 2019.

 

 

Source: theurbandeveloper.com

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Commercial

Dexus Eyes $100m Sale for Brisbane Retail Centre

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Dexus Eyes $100m Sale for Brisbane Retail Centre

Dexus Wholesale Property Fund are looking to offload a 100 per cent freehold interest in Beenleigh Marketplace, a sub-regional shopping centre located 32-kilometres from Brisbane’s CBD.

The 19,476 square metre asset, which last transacted in 2013, is anchored by Woolworths and Big W and spans a 60,680sq m site.

The landholding also includes 4,390sq m of adjoining land earmarked for further development.

JLL head of retail investments Simon Rooney has been appointed to market the expressions of interest campaign amid weak sentiment in the retail property sector.

“Investors are pursuing a low-risk retail strategy at present,” he said.

Rooney said investors were targeting small and mid-sized sub-regional centres with a major focus on retail services along with food and beverage offerings.

“F&B has consistently been the fastest growing retail category over the last five, 10 and 20 years, which underpins solid leasing demand.”

Dexus Eyes $100m Sale for Brisbane Retail Centre 1

Recent transactions for sub-regional centres include the Rockdale Plaza sale in Sydney purchased by Charter Hall for $142 million last month, Sydney’s Neeta City purchased by Elanor Investors for $85.3 million in March, and Melbourne’s Campbellfield Plaza bought by Charter Hall for $74 million in December last year.

Transaction activity was highest within the $50-million to $150-million bracket for retail property last year.

Rooney said the Beenleigh retail hub outperforms the industry averages with total centre moving annual turnover (MAT) of $113.7 million.

Beenleigh, located in the city of Logan, has a current population of 83,570 which is expected to increase 2.1 per cent annually to 2031.

The expressions of interest campaign closes on June 6.

 

 

Source: theurbandeveloper.com

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Abacus sells four sites worth $31m

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Abacus sells four sites worth $31m

Abacus Property Group is making good on its promise to exit residential projects.

The Steven Sewell-led funds manager has offloaded three residential development projects and a development site with a combined book value of $31 million.

The deal, expected to settle in June, has resulted in Abacus offloading the three sites in Melbourne and one in Queensland to an offshore developer.

The properties include an eight storey, $180 million apartment complex at 512-544 Spencer Street in West Melbourne on which Abacus was undertaking a joint venture with Lechte Corporation and Crema Group that included a 2100 square metre supermarket.

Another property offloaded was a controversial development in the Brisbane suburb of Alderley which Abacus successfully got rezoned from industrial to residential despite significant opposition from residents.

The 4.6 hectare Newmarket Brickworks site at 95-117 Mina Parade will be bulldozed to make way for 51 two-storey townhouses and 287 units across a building between two and five storeys.

Another permitted site is at 410 Smith Street, Fitzroy, one of Melbourne’s trendiest inner-city enclaves.

The group has also offloaded a site at 10-12 Hampstead Road, in the inner-west Melbourne suburb of Maidstone, itself undergoing a gentrification-led renaissance.

“This divestment demonstrates delivery of Abacus’ strategic objective of reducing exposure to residential,” Abacus said in a statement.

 

The settlement proceeds will be used to reduce debt, the group said.

Mr Sewell, who took over last year from industry veteran Frank Wolf, has said Abacus will grow its exposure to the self-storage sector and reduce its reliance on residential.

The deal reduces its residential holdings to just two remaining assets.

Last year it purchased an office tower at 464 St Kilda Road in Melbourne for $47.7 million in a 50-50 joint venture with Singapore’s Wing Tai group.

Other recent purchases include Sydney’s oldest cinemas, the historic Metro Theatre at 28-30 Orwell Street in Potts Point, which Abacus settled for $19.8 million.

 

 

Source: www.brisbanetimes.com.au

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Multiplex Wins Out On $3.6bn Queen’s Wharf

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Multiplex Wins Out On $3.6bn Queen’s Wharf

Construction giant Multiplex has been awarded the massive Queen’s Wharf construction contract, estimated to be worth up to $1.5 billion.

The competition for the “city shaping” Queen’s Wharf contract, as flagged by The Urban Developer in February, had come down to two contractors: Multiplex and Hutchinson Builders.

Multiplex will kick off construction by mid-year.

The lump sum contract is for the development of the integrated resort component of Queen’s Wharf, which includes five levels of basement car park, the tower structures, the sky deck and the façade of the main integrated resort.

At least 60 per cent of the project cost will be executed under the construction contract. In its half yearly results, Star Entertainment Group said it was targeting a total $2.4 billion project cost.

“It’s a massive contract that, in total, will include approximately 370,000sq m of floor area and 105,000sq m of energy efficient glazed façade,” Destination Brisbane Consortium project director Simon Crooks said.

Multiplex Wins Out On $3.6bn Queen’s Wharf.

The project is being developed by the Destination Brisbane Consortium, a joint venture led by casino giant Star Entertainment Group, with Far East Consortium and Chow Tai Fook Enterprises.

Star holds a 50 per cent equity share in the project, while its Hong Kong-based partners each hold a 25 per cent interest.

When complete, Queen’s Wharf Brisbane will deliver four new hotels, more than 50 bars and restaurants, 2,000 residential apartments and the equivalent of 12 football fields of public space.

It will cover a massive 27.3 hectares — about 20 per cent — of Brisbane’s CBD.

Multiplex Wins Out On $3.6bn Queen’s Wharf 1

Multiplex, which halted work on the $1.2 billion Collins Arch project earlier this month, delivered Queen’s Wharf neighbour Cbus Property’s “tower of power” at 1 William Street and the $1 billion Brisbane Quarter.

Major Queensland projects under construction for the building giant include the residential component of Brisbane Quarter and Yuhu Group’s triple-tower Jewel development on the Gold Coast.

The first stage of the Cottee Parker-designed integrated resort development is slated for a late-2022 completion.

Crooks said that the contract remained subject to board approval and state government endorsement.

“The next step will be the public confirmation of the contract signing after the state government has completed its review process.”

Construction works are expected to reach George Street level by late-2020.

 

Source: theurbandeveloper.com

 

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