Charter Hall’s Prime Office Fund has purchased a development site in the inner Brisbane suburb of Newstead from Tatts Group for $16.5 million and will develop a new office building in a joint venture with construction group John Holland.
The property, located at 11 Breakfast Creek Road, is the last remaining office development site within the established Gasworks precinct where Charter Hall-managed funds already have a presence at 100 Skyring Terrace.
John Holland has pre-committed to the new project for two floors, which will accommodate the company’s Queensland regional office.
Charter Hall’s head of office Adrian Taylor said John Holland’s agreement was a significant pre-commitment prior to construction commencing.
He said Charter Hall had appointed JLL’s Sam Barr and Gerry Leyden to lease the remaining space of the 26,000-square-metre A-grade building in a fringe market where vacancy is healthier than the Brisbane CBD.
“Charter Hall is proud to extend our strong partnership with John Holland following the successful development of the Western Sydney University Parramatta CBD campus,” Mr Taylor said.
“Through developing new core product we are able to provide our investors with access to sector leading institutional grade property investments without competing on market.”
John Holland chief executive Glenn Palin said the construction group was committed to a “strong partnership approach” to deliver innovative building developments all around Australia that meet and exceeded community expectations.
John Holland is owned by China Communications Construction Company International Holding, one of China’s largest construction and infrastructure businesses.
JLL’s national director for sales and investments Seb Turnbull, negotiated the sale of the development site on behalf of Tatts Group.
The site has an existing development approval for a 14-level office tower, with ground-floor retail, 188 basement car parking bays and end of trip facilities.
Charter Hall’s Head of Office Development Andrew Borger said there was potential to reconfigure the development approval to maximise the site area. He said he was confident the building would be quickly leased.
Original article published at www.afr.com by Staff Writer 31/8/16