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Development Upside for Former Entertainment Hub

Development

A prime development opportunity for two adjoining freehold sites along a busy arterial road has hit the market.

Ray White Commercial Northern Corridor Group are marketing the former food and entertainment hub, 403-407 Elizabeth Avenue, Kippa-Ring for sale.

Located 18 minutes from the fast-growing North Lakes, the 13,093sq m site comprises three buildings including two drive-thru buildings and a once-bustling bowling alley, creating a total building area of 2,472 square metres.

The suburban neighbourhood-zoned site boasts a large car park area providing 86 car parks and a highly-exposed 140m wide street frontage to Elizabeth Avenue. This exposure includes three driveways for access.

Ray White Commercial Northern Corridor Group commercial director and principal Chris Massie said the site is among one of the stronger sites for potential development.

“The two-existing drive-through sites will be an obvious drawcard for value-add developers to generate immediate income while they reposition the main building,” Massie said.

“Due to this site’s proximity to Kippa-Ring Station and Kippa-Ring State School, the development has the opportunity to service a daily transport patronage of 2,000 people travelling inbound and outbound, as well as capture the attention of more than 30,000 daily vehicle movements.”

Development

▲ A prime development opportunity for two adjoining freehold sites along a busy arterial road has hit the market.

In its 2019-20 budget, the Moreton Bay Council confirmed it will provide more than $227 million for capital works with a focus on community infrastructure and healthy and active lifestyle opportunities.

This includes $112 million on road and transport networks to improve connectivity, travel time and transport options, increasing vehicle movement through the area.

While the addition of the $1 billion Redcliffe Peninsula Rail Line is set to service 618,000 residents by 2036 and 39 new residential developments.

“Strong infrastructure investment and growth projections for the Northern Corridor mean this confidence is likely well placed.” Ray White Commercial Northern Corridor Group associate director Aaron Canavan said.

“We are seeing more confidence from traditionally passive investment groups, who are now willing to look at value add properties like this.”

The site is located within walking distance of the Peninsular Fair Shopping Centre, Kippa-Ring Station and Kippa-Ring State School and within 10 minutes of the Redcliffe Hospital, Clontarf industrial estate and the stunning Redcliffe waterfront.

Expressions of interest close 4pm, Thursday 18 March 2021 if not sold prior.

 

Article Source: theurbandeveloper.com

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Brisbane

Brisbane Office Vacancies Heading for 15pc Peak

Brisbane

Brisbane CBD office vacancies are expected to peak at more than 15 per cent this year

They will improve in 2023 but the level of sub-lease space being marketed remains a wildcard, according to the Knight Frank Brisbane CBD Office Market report, released this week.

Under the pressure of new supply and further negative net absorption, the report found, vacancies in the city’s office market will reach a 15.7 per cent peak in June.

Knight Frank Queensland partner and report author Jennelle Wilson said office vacancies were expected to remain elevated during next year.

“We will then begin to see material decreases during 2023,” Wilson said.

“In the medium term, vacancy is expected to remain above 12 per cent through to 2024-2025, which will continue to limit supply additions without substantial pre-commitment.”

The Knight Frank research found that leasing activity during the pandemic has been dominated by smaller tenants, with 85 per cent of leasing activity, excluding renewals, last year and into 2021 largely for tenants requiring less than 1000sq m.

Knight Frank head of office leasing Queensland Mark McCann said tenant activity was on the horizon with tenant engagement from larger users expected to increase from the middle of this year.

Tenants active in the CBD market and expected to make their next location decision announcements soon include CUA (6000sq m), KPMG (8000sq m), McCullough Robertson (4000sq m), APA Group (4000sq m) and the Federal Government (about 38,000sq m), according to the report.

McCann said the great unknown in future vacancy remained the level of sub-lease space being marketed.

“The actions of tenants during the next 12 months in this space—to either reoccupy or relinquish—has the potential to move the needle for the total vacancy rate,” he said.

The Knight Frank report found investment market activity is rebuilding after a slow 2020.

Last year turnover totalled $607.6 million, representing the lowest total transaction level since 2008 and 2009, following the GFC.

This year so far $210 million in deals have settled and $530 million is under contract, which the report notes, points to a strong year ahead.

Assets under contract include “the Gold Tower” at 10 Eagle Street, snapped up by local private syndicator Marquette Properties.

Wilson said offshore activity in the investment market during last year was limited to the settlement of the one major sale—66 Eagle Street.

This transaction comprised 63 per cent of the total transaction activity, with the remaining sales to domestic players.

“Despite few transactions and limited offshore active buyers, yields have remained firm for core assets, with the yield band widening to reflect assets with short-term vacancy exposure,” Wilson said.

 

Article Source: theurbandeveloper.com

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Brisbane

Marquette Splashes $285m on Brisbane’s Gold Tower

Marquette

Marquette Properties has splashed out $285 million to secure 10 Eagle Street in Brisbane’s so-called “Golden Triangle”.

Marquette managing director Toby Lewis said the gold tower was one of the top 10 buildings in the CBD with an “excellent leasing history” and they had been anticipating its entry to the market.

“I think it’s an irreplaceable asset in Brisbane’s CBD,” Lewis said.

“We are Brisbane-based and focused. Brisbane City is our favourite place to invest and grow and help shape the city. We have three CBD assets … we have about $550m exposure to Brisbane City.”

Lewis said the office market had been robust through the pandemic.

He said he was confident it would continue to grow during the next two years, helped by the investment in Cross River Rail and the city’s bid to host the 2032 Olympic Games.

“Despite the ongoing long-term uncertainty associated with the Covid-19 pandemic, we have enabled more than 150 Australian families to invest in 10 Eagle Street and look forward to delivering strong returns as Brisbane continues to grow as a city and as a city to invest in,” Wilson said.

Dexus sold the asset from its Dexus Office Partnership portfolio and net sale proceeds would be used to pay down debt, chief investment officer Ross Du Vernet said.

“This transaction continues our asset recycling strategy, realising value for both Dexus and our Dexus Office Parner while reducing our exposure to the Brisbane market,” Du Vernet said.

“It also provides us with an excellent opportunity to focus our leasing, asset management and development capabilities on advancing our city-shaping development project at Waterfront Brisbane.”

The golden tower at 10 Eagle St was built in 1978. The 34-storey building has 27,8000sq m of office space in Brisbane’s golden triangle, bordered by Eagle, Queen and Edwards streets. It was the city’s tallest building at the time of completion.

The sale is expected to settle next month. The building is 92 per cent occupied with a weighted average leasing expiry (WALE) of 2.9 years with key customers including AEMO, Wilson Parking and Accenture.

 

Article Source: theurbandeveloper.com

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Commercial

Primewest Picks Up Gold Coast Retail Centre for $66m

Primewest

Primewest has purchased a large format retail centre on the Gold Coast for $66 million.

The 14,800sq m Robina Home and Life complex was recently developed and sold by QIC’s real estate arm.

The homemaker centre, on a 3.6ha site, features 13 large-format retail tenancies, anchored by Nick Scali and The Good Guys, and a cafe.

Based on fully leased net income, the deal was struck on a yield of about 6 per cent.

The centre, at 550 Christine Avenue, adjoins Bunnings Warehouse—also divested by QIC, in December for $28m—was sold with a weighted average lease expiry of 3.3 years.

Founded by John Bond, the son of the late tycoon Alan Bond, Primewest has more than $4.9bn of assets under management across Australia and the west coast of the United States, across the retail, industrial, commercial and residential sectors.

The listed fund manager is a significant owner in the large-format retail sector, with over 18 assets under management totalling over 300,000sq m and another centre currently under development.

Primewest has been actively targeting neighbourhood shopping centres across the country under a new institutional mandate and $300m fund, formed in June last year.

Primewest said the homemaker centre will seed a new private unlisted trust, the PW Large Format Retail Trust No.2.

Primewest executive chairman John Bond said the pandemic had shone a light on a number of successful retail assets that had performed well during the crisis due to a strong tenant mix focusing on non-discretionary or serviced-based retailers.

“The company remained very confident in the large format retail sector and saw a clear opportunity for growth [in] Robina,” Bond said.

“[The shopping centre] is at the epicentre of the rapidly expanding Robina community which will benefit from more than $17 billion worth of planned investment in the immediate Gold Coast vicinity.”

Last year, Primewest seeded the fund with the $34.8m acquisition of Spring Farm Shopping Centre, south of Sydney, from Woolworths.

It also purchased Pemulwuy Marketplace and West Ryde Marketplace in Sydney for a combined $91.5m from Charter Hall Retail REIT.

In 2019, Primewest bought Stockland’s Tamworth Homespace, a single-level, large-format retail shopping centre 4km south of Tamworth’s CBD, and Coffs Harbour’s Moonee Marketplace for $30.5m.

 

Article Source: theurbandeveloper.com

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