The 10-storey Edison Exchange building in the heart of Brisbane’s “golden triangle” precinct will hit the market for the first time.
Telstra developed the 10-storey commercial building in 1963, and still owns the property to this day.
The property will be sold with a sale and leaseback arrangement, with a seven-year lease, plus a one-year option to Telstra.
The building offers 12,200sq m of gross floor area on the 1,675sq m site, and due to local planning is said to offer plenty of development potential.
Knight Frank’s Justin Bond, who has been appointed to broker the deal, says the property offers investors and developers an opportunity to secure a premium under-utilised site earmarked for major redevelopment.
“Particularly considering the highly attractive CBD position as well as the favourable town planning provisions,” Bond said.
“Effectively providing three-street frontages, the development potential of the site is significant.”
Bond said the city centre zoning allows for no maximum building height and offers a multitude of development potential including office, hotel, retail and residential.
While no price guide has been confirmed, thanks to steady demand in Brisbane’s commercial market, reports estimate the building could fetch prices north of $75 – $80 million.
Part of Brisbane’s history, the Elizabeth Street site has operated as a telephone exchange since the 1880s.
Up to 175 telephone services became available 24/7 in 1883 and it was manually operated until 1929 until switching over to an automated service.
Recent Brisbane CBD transactions include US property giant LaSalle’s $52.25 million purchase of 293 Queen Street in December.
Rockworth Capital Partners purchased the 17- storey office tower at 100 Edward Street for $60 million in August in an off-market deal.
Charter Hall acquired a high-profile development site on Queen Street Mall for $93.9 million last July.
Bond said he expects the 280 Elizabeth Street property to attract interest from both domestic and overseas buyers.
It will be sold via an expressions of interest campaign ending 28 February.
Walker Corp Offloads Proposed Ann Street Tower
Property fund manager EG has acquired a site in Brisbane’s Fortitude Valley, just 1km north of its CBD, for $27.72 million on a tight 4.7 per cent net yield.
The 3,582sq m site has development approval for two separate schemes — one residential, one commercial — with Lang Walker’s Walker Corporation scrapping the apartment scheme after the market turned in 2017.
Walker Corporation acquired the whole-block island site in 2015 for $22.2 million.
The developer later won approval for a 26-storey A-grade office tower comprising 44,000sq m of net lettable area and ground floor retail. Cox Architecture designed the scheme.
The $400 million green star-rated office tower would eventually house up to 5,000 workers, Walker Corporation said.
Located close to trendy James Street, EG’s latest asset joins a swathe of office development in the area including Consolidated Properties’ $250 million office scheme at 895 Ann Street and Pellegrino Group’s commercial building at 89 McLachlan Street.
The 801 Ann Street site is the eighth asset to join EG’s Yield Plus Infrastructure No. 2 fund, which has a $750 million real estate mandate.
EG has more than $2.4 billion worth of assets under management.
In 2018, the Sydney-based fund manager picked up a 17-storey Brisbane office tower from Peter Harburg’s portfolio and offloaded Fortitude Valley’s Optus Centre site for $23.5 million.
The site, which had approval for a controversial apartment scheme, was acquired by Scott Hutchinson of Hutchinson Builders for the 3,300-person capacity Fortitude Valley Music Hall.
A spokesperson for EG Funds said that the site had been initially acquired as a yield producing asset. The Volvo showroom and car service centre lease expires in 2024.
The transaction was brokered off-market by JLL’s Seb Turnbull.
PortGate Logistics signs on for 30 years in Brisbane
Transport and logistics operator, PortGate Logistics, will relocate to a new three hectare site as part of the Fisherman Islands development at the Port of Brisbane.
A sub-tenant of Portgate Properties, PortGate Logistics has committed to a 30-year lease deal that will include purpose-built facilities comprising a 6000 square metre warehouse, container hardstand, office building and car parking.
Additional areas will be developed for log storage and pack-unpack facilities.
Portgate Properties Pty Ltd currently sub-lease several warehouses and hardstand areas within the Port of Brisbane PortGate precinct where it has maintained a presence since 2006.
Brothers Steve and Terry Tzaneros have run container parks on Fisherman Islands since the early 1990s.
Port of Brisbane CEO, Roy Cummins, said the lease not only reaffirmed PBPL’s long-standing partnership with PortGate Logistics, but the new location would enable PortGate Logistics to deliver great benefits to its customers.
“We were very pleased to be able to work closely with PortGate Logistics to identify an opportunity for them to relocate ‘on Island’, which will also allow their customers more convenient access to the container terminals,” he said.
“This is another demonstration of the Port of Brisbane’s ability to work with our existing customers to support their relocation or expansion requirements, and provide long-term certainty for all parties,” said Cummins.
“The Port of Brisbane’s property revolution continues to go from strength to strength.”
In a joint statement, Arthur and John Tzaneros said, “For PortGate Logistics to continue growing it needed to move on their own designated site, Office, Warehouse, Full Container Park & Reefer Area, Large Fumigation areas for Containers, Break Bulk Area, the Facility will also be licenced as a Bond & Quarantine Facility as well as being a few hundred metres from the Container Terminals.”
“This is only part of our strategy for our future and the Port of Brisbane has enabled us to make this work, we look forward in working with the Port of Brisbane and all our clients into the long future we have ahead of us.”
PortGate Logistics has engaged Space Frame to construct the facility.
Construction is expected to be completed June 2019.
Savills sell two Bowen Hills, Brisbane properties to 99 Bikes
National bike giant 99 Bikes has spent $5.5 million buying two adjoining properties in Brisbane’s Bowen Hills.
They’re set to consolidate two existing stores in to the one property at 62-66 Abbotsford Road.
Savills agents Gregory Woods and Daniel Pepper negotiated the deal, with 111 enquiries received throughout the campaign.
The new superstore is in replacement of the previous stores located in Fortitude Valley and Windsor, and will also house administration, logistics and warehousing needs for the business.
Woods said the building size and location was ideal for the retailer, with the high level of exposure a major draw card.
“We had originally taken the property next door to market, with 99 Bikes inspecting the facility, however they expressed a need for a larger space.
“Fortunately, the seller also owned some adjoining properties which is what prompted the sale of 62-66 Abbotsford off- market,” Mr Woods said.
The properties are situated on a total 2,028sq m site, achieving a rate of $3,309 per square meter by total building area of 1,662sq m.
Pepper said owner occupiers continue to be attracted to Bowen Hills, due to its underlying land value and future development potential.
“Evidenced by the significant enquiry we received throughout the campaign, we are seeing an increased interest in Bowen Hills due to the significant price disparity between neighbouring suburbs such as Newstead,” Mr Pepper said.
Managing Director of 99 Bikes, Matt Turner, said the new store is set to open on Thursday 20 June 2019, with the online warehouse up and running from the new location now.
“When the store opens there will be an extended range with express click and collect from the online store,” Mr Turner said.
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