Two Towers Sold in Record Making Deals
Andrew Borger 21 Nov 2011
In two record making portfolio transactions, Leighton Properties has sold HQ North tower in Fortitude Valley and a planned office tower in the Ipswich CBD for a combined total of $279 million.
Both properties have been acquired by property fund manager Cromwell, in transactions negotiated by Jones Lang LaSalle and CBRE.
Leighton Properties' Managing Director, Mark Gray, said the transactions are consistent with Leighton Properties' business model of developing high quality, prime grade office assets for long term investors.
Andrew Borger, National Head of Commercial at Leighton Properties, said these deals have broken sales records outside of the Brisbane CBD. “The $186 million sale of the HQ North tower in Fortitude Valley is the largest office transaction of a Brisbane city fringe development in Queensland history,” he said.
“This sale reflects the underlying strength of the Valley office market and the quality of the tower’s award winning, sustainable design undertaken by Leighton Properties in conjunction with Leighton Contractors.”
IPSWICH SETS NEW RECORD
Mr Borger said the sale of Leighton Properties’ new Ipswich commercial tower, being developed as part of the billion dollar Ipswich City Heart revitalisation project, has also set a new record.
“The $93 million sale of the Ipswich office tower, which will commence construction at the end of this year, is the largest office transaction made outside of Brisbane,” he said.
“The nine story office tower comprises 16,120sqm of commercial office space and is fully precommitted to the State Government for an initial term of 15 years, with two five year options.
“To achieve these results before we’ve even broken ground is a testament to the quality of the project and is consistent with our national strategy to pre-sell large commercial developments.”
At completion, the landmark Ipswich City Heart urban renewal project will create a vibrant mixed-use precinct comprising a 60,000sqm shopping centre, speciality retail, restaurants, commercial office space and residential apartment living.
Leighton Properties is developing the project with joint venture partner Ipswich City Properties.
HIGH QUALITY WITH GREAT RETURN
CBRE’s Bruce Baker, who brokered the deal for HQ North tower with colleague Bill Tucker, said asset quality is always a major factor for investors like Cromwell.
“High quality assets with first rate sustainability measures are what capital investors in particular are looking for,” Mr Baker said. “The $186 million HQ North tower sale further reinforces Fortitude Valley as the premier location for investment in Brisbane outside of the CBD. Mr Baker said Cromwell was looking for quality property with guaranteed returns.
“The fact that the Ipswich tower is already fully leased to a high profile tenant such as the State Government was definitely a drawcard,” Mr Baker said.
“Investors are looking for a stable return on investment and the long term lease on the Ipswich tower by a quality tenant provides that stability," he added.
For more information
National Head of Commercial
Phone+61 7 3370 4700
Email Andrew Borger