Charter Hall and Investa have secured two pre-commitments for an $800 million office earmarked to replace three Brisbane buildings acquired in 2017 from Clive Palmer, Mark Lo Giudice and Blackstone.
In the biggest deal, accounting and advisory firm BDO has agreed to lease 9000 square metres – or 20 per cent of the proposed lettable area – at 360 Queen Street.
HopgoodGanim Lawyers will rent c6300 sqm.
Both agreements are for an initial 12 years.
The occupiers were represented by Cornerstone Properties’ Andrew Harper.
According to the Property Council of Australia’s January, 2022, Office Market Report, Brisbane CBD’s office vacancy rate is 15.4 per cent, up from 11.9pc six months earlier.
Charter Hall and Investa paid the three vendors a total of $53.75 million for the 2147 sqm holding making way for the proposed 33 level, 45,000 sqm premium grade office.
One of the components, 380 Queen St, contained an 11 storey building controlled since 2009 (first via a company, then directly) by mining magnate and politician Clive Palmer; occupied as the businessman’s Mineralogy headquarters, it is understood to have cost the partnership just over $20m.
A second parcel, with a low-rise B-grade office, 366 Queen St, was offloaded by ex-Carlton Football Club president Mark Lo Giudice’s Crawford Group for $8m – a rise on the $4.9m it paid Nathan Tinker four years earlier.
Blackstone sold the third property – a seven floor commercial investment – for c$24m, a 20pc premium on its 2007 outlay.
Green building due for completion in 2025
Due for completion in 2025, 360 Queen St is intended to be carbon neutral and obtain a 6-star Green Star Building rating a 5-star NABERS Energy score (story continues below).
Penned by Blight Rayner, the tower will appear on stilts over a five level podium and basement with end-of-trip facilities, with landscaped terraces dubbing as wintergardens.
A business hub and wellness centre will occupy the lower levels.
A ground floor retail precinct will be flanked with food and beverage offerings.
Deals mark resurgence in Brisbane office sector: Charter Hall
The asset will be held by the Charter Hall Prime Office Fund (CPOF) and Investa Commercial Prime Office Fund.
“These lease agreements signal a clear resurgence in the office sector,” Charter Hall chief executive officer, David Harrison, said.
“We are seeing a flight to quality where premium, state of the art office buildings are attracting the highest rates and providing outstanding returns for CPOF investors,” according to the businessman.
Investa chief executive Peter Menegazzo added the asset increase’s the group’s exposure to the Brisbane market.
It also represents an execution of the company’s strategy to hold sustainable assets, he said.
Elsewhere in the Queensland capital, Melbourne based Forza Capital is intending an uber-green refurbishment of an office at 200 Creek St which it acquired for $41m late last year part backed by a Clean Energy Finance Corporation loan.
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