Peter Court, Mike Walsh and Fred Le Fanue from Cushman & Wakefield managed the negotiations, which included the purchase of the 9,088 sq m building on a vacant possession basis from Brisbane-based developer Silverstone.
The not-for-profit health provider Mater then structured a 10-year leaseback to themselves, and on-sold the building to Charter Hall with a simultaneous exchange on the property.
Charter Hall Group chief executive David Harrison said the Newstead acquisition introduces a well-capitalised healthcare tenant to the ASX-listed group’s portfolio.
“We are excited about establishing a relationship with Mater as a major tenant customer within our growing Social Infrastructure portfolio,” Harrison said.
Walsh said the strong yield also “highlights the ongoing resilience” of the Brisbane office market.
“Mater approached us with the requirement for a new headquarters in April and the idea was conceived and negotiated during the height of Covid,” he said.
The transaction involved two deals, selling the building vacant from vendor Silverstone Developments to Mater, who put themselves on a leaseback, and then on-selling the property to Charter Hall.
Brisbane-based Silverstone Developments picked up the Newstead site in early 2019 from Metro Property. The developer began construction on its speculative build last year after appointing Hindmarsh to build the Rothelowman designed project.
Silverstone has plans for a nine-storey medical facility at 525 Boundary Street, Spring Hill, and is also behind the 12-storey tower redevelopment of the PCYC at 458 Wickham Street in Fortitude Valley.
Mater is one of the largest not-for-profit employers in Queensland with more than 10,000 staff and spans Mater Health, Mater Education, Mater Research and a network of hospitals across the state.
The Newstead building, which is expected to reach practical completion by the June quarter next year, sits approximately 2.6 km northeast of Brisbane CBD and is located near the Mater’s existing hospital in South Brisbane.
When finished, the building will be the new corporate headquarters for Mater, as well as offering healthcare training facilities.
Other projects underway in the area include 895 Ann Street in Fortitude Valley backed by Consolidated Properties, and the 14-level Jubilee Place, at 470 St Pauls Terrace.
On the residential front, property giants Frasers Property Australia and Mirvac were announced as the first two developers to work with the state government on its build-to-rent pilot scheme.
Mirvac will deliver a 390-apartment project at nearby 60 Skyring Terrace in Newstead.
While Frasers Property will develop a 25-level building comprising 354 apartments at 210 Brunswick Street in Fortitude Valley.
This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.
DINAH LEWIS BOUCHER