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Suncorp Strikes Massive Leasing Deal as Mirvac Moves to Sell $418m Stake

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Suncorp Strikes Massive Leasing Deal as Mirvac Moves to Sell $418m Stake

After months of speculation, Suncorp has announced it will take close to 40,000sq m in Mirvac’s $800 million 80 Ann Street Brisbane CBD tower, marking the largest leasing deal in more than a decade.

In an ASX announcement on Monday, Mirvac said that it has entered into an agreement to sell 50 per cent of the tower to British fund manager M&G Property’s Asian property fund.

The deal, worth $418 million on a 5 per cent cap rate, will see M&G fund 50 per cent of the construction and development costs of the tower.

Now that a major tenant has been secured, Mirvac has exercised a put-and-call option with Singaporean developer Wee Hur for $79 million for the 5,500sq m site. Wee Hur had previously received a permit for a 36-storey student accommodation tower on the site.

The Suncorp lease was fiercely sought-after, with Mirvac beating out Charter Hall and Investa’s 360 Queen Street and ISPT’s Regent Tower for the lease.

Suncorp will take up 66 per cent of the tower – 39,600sq m – for a 10-year term and move into its new Brisbane location by September 2022.

Suncorp Strikes Massive Leasing Deal as Mirvac Moves to Sell $418m Stake

The $800 million, 32-storey development has been described as a “city within a building”, spanning an entire block between Ann and Turbot streets. Suncorp will lease 39,600sq m, or 66%, of the tower.

The 80 Ann Street tower will offer 72,540sq m of office space with 1,500sq m floorplates; Mirvac lodged an development application for the Woods Bagot-designed office tower in February.

The move will consolidate Suncorp’s Brisbane workforce into a single office space, following on from similar office consolidation projects the bank has carried out in Sydney, Auckland and Melbourne.

“It will provide the flexibility we require for our future workforce and is an opportunity to bring our teams in Brisbane together into one location,” Suncorp chief executive Michael Cameron said.

Mirvac chief executive Susan Lloyd-Hurwitz said the company had worked closely with Suncorp and architecture firm Woods Bagot on the deal for a number of months.

“We have been able to provide Suncorp with a superior, bespoke workplace solution that meets all of their strategic objectives, and allows for flexibility into the future.”

The $800 million, 32-storey development has been described as a “city within a building”, spanning an entire block between Ann and Turbot streets.

“The design returns the last remaining piece of Brisbane’s oldest surviving fruit and produce market on Turbot Street back into the city fabric, and – with its overwhelmingly public and porous ground floors – will act as a catalyst to the upcoming Brisbane Live precinct and the development of the north-west quarter of the CBD around the Roma Street Station,” Woods Bagot director Mark Damant said.

The 80 Ann Street development will provide 6 Star Green Star, 5 Star NABERS Energy and Gold Shell and Core WELL ratings.

Subject to Mirvac finalising the land acquisition from Wee Hur, Suncorp will move into its new, consolidated digs by September 2022.

Source: theurbandeveloper.com

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Singapore Logistics Trust Snaps Up Coles Distribution Centre

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Singapore Logistics Trust Snaps Up Coles Distribution Centre

Singapore Logistics Trust Snaps Up Coles Distribution Centre

Singapore Logistics Trust Snaps Up Coles Distribution Centre. Singapore real estate investment giant Mapletree its maiden Brisbane asset, a Coles distribution centre in the city’s south west for $105 million.

Mapletree’s Singapore-listed logistics trust picked up the 55,739sq m Heathwood asset on a 5.7 per cent yield.

The purchase brings Mapletree’s Australian portfolio to 10 assets of more than S$600 million ($613m).

Demand for Australian logistics property is offsetting an otherwise dour property market, with the e-commerce boom driving high demand in the large format logistics space.

Brisbane’s industrial sector has seen vacancy rates drop by 3 per cent over the last quarter, as larger tenants compete for limited space, according to a recent Knight Frank Brisbane industrial vacancy report.

 

Singapore Logistics Trust Snaps Up Coles Distribution Centre

Mapletree’s listed logistics trust has snapped up a Coles distribution 28km south-west of Brisbane.

Mapletree logistics trust chief executive Ng Kiat said that the acquisition would provide a stable and growing income to its unitholders.

The massive Coles distribution complex sits on a 151,600sq m land parcel with the opportunity to yield an additional gross floor area of up to 19,000 square metres.

The centre is located along the Logan Motorway 28 kilometres from Brisbane’s CBD.

“Brisbane’s logistics market poised to benefit from several major infrastructure developments [such as] Brisbane Airport’s second runway, the inland rail connecting Melbourne and Brisbane, and various rail and intersection upgrade projects,” Mapletree said.

Coles has a remaining lease term of 4.3 years until January 2023.

Mapletree has four Singapore-listed real estate investment trusts and six private real estate funds, with a S$46.3 billion ($47bn) portfolio of assets in the UK, USA and Asia Pacific.

Source: theurbandeveloper.com

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Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring

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Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring

Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring

Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring. Developer Keylin Group has lodged plans with Brisbane City Council for a $75 million residential development in Brisbane middle ring suburb Upper Mount Gravatt.

The subject site, located at 22-40 Dawson Road, comprises 10 lots on a 4860sq m parcel of land.

The proposal, designed by architect Group GSA, is grouped into three separate buildings along Dawson Road, stepping down in height from seven, six and five levels.

 

Dawson Road Site

Developer Lodges Plans for 138 Apartments in Brisbane’s Middle Ring

Keylin Group’s Louis Cheung said the group is a big believer of Brisbane’s growth in the middle ring.

The developer says the project is planned in a thriving precinct with a “record growth rate and a high rental demand and yield”.

The development will comprise a total of 138 units offering a mixture of one, two and three bedroom apartments, with the project itself split across two stages.

Historically, Cheung says the trend in development for the area has catered towards the investor market.

“The design of this project focuses more on the owner occupier market, with a large portion offering three bedroom apartments,” Cheung told The Urban Developer.

“One of the key components for the development is car parking and ample storage areas. More than 50 per cent of our two bedroom apartments have two car parks, a point of difference to your typical offering.”

“Throughout the design process we have referenced the New World City Design Guide: Buildings That Breath document and where possible integrated philosophies and key elements into the design,” GSA said in their design statement.

 

The proposal has been grouped into three separate buildings along Dawson Road. Building three will be constructed within the first stage and buildings one and two to be constructed in the second stage.

The proposal has been grouped into three separate buildings along Dawson Road. Building three will be constructed within the first stage and buildings one and two to be constructed in the second stage.

The precinct is close to existing infrastructure such as Griffith University, QEII Jubilee Hospital and Brisbane Technology Park and has proximity to public transport, the M1 and the proposed Brisbane Metro which is set to benefit the area.

The Mount Gravatt area is considered a key economic hub roughly 15 minutes from Brisbane’s CBD, with estimates it will deliver more than 10,000 jobs by 2031.

Other nearby developments include an eight-storey residential building by Brisbane-based developer Opalyn Property Group, which will comprise 67 apartments.

Source: theurbandeveloper.com

 

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Healthy Demand for Large Format Industrial in Brisbane

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Healthy Demand for Large Format Industrial in Brisbane

Healthy Demand for Large Format Industrial in Brisbane

Strong demand in Brisbane’s A-grade industrial sector has seen vacancy rates drop by 3 per cent over the quarter, according to latest research.

Healthy Demand for Large Format Industrial in Brisbane. The 3 per cent drop over the three months to October reflects a 2.8 per cent decrease over the past year as larger tenants compete for limited space, according to Knight Frank’s Brisbane Industrial Vacancy report.

Knight Frank’s Mark Clifford said tenants with larger requirements were very active, with the improvement in A-grade vacancy for the quarter largely due to speculative space absorption.

The company recently negotiated more than 48,900sq m of leases across six assets in a six-week span.

“These deals have been for existing A-grade facilities, above 5000sq m in size, with the tenants being large scale businesses either expanding or looking for efficiencies in their warehousing and distribution strategy by occupying newer well-designed facilities,” he said.

The report found the improvement in vacancy in the A-grade market dropped by 18 per cent to 227,161sq m, in contrast to available secondary accommodation which increased by 18 per cent to 238,921sq m.

Due to limited existing or speculative stock, Knight Frank Partner Chris Wright said there would be a greater focus on design and construct options.

“We don’t expect tenant demand to slow down, with all the fundamentals in the market being positive including the Queensland economy and population growth ticking along, upcoming infrastructure projects and reasonable business confidence.

“But it’s going to be hard for tenants to find existing buildings of 5000sq m plus.

“This has to translate into more activity in the design and construct sector at key industrial land estates. We are going to start seeing some spec activity as well given the healthy demand for 5000sq m plus.”

Related: Futuristic Warehouses, E-Commerce Drives Industrial Market

Source: Urban Developer – Healthy Demand for Large Format Industrial in Brisbane

 

 

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