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Queensland government strikes $45m DEXUS leasing deal


The Queensland government has agreed to a $45 million leasing deal as part of its preparations to exit the government precinct in Brisbane, making way for The Star and Far East Consortium’s casino and resort development, Queens Wharf.

The state government’s Department of Public Works will take 8233 square metres for eight years in DEXUS Wholesale Property Fund’s AM60 office tower at 42-60 Albert Street, Brisbane.

The government department will come out of 80 George Street which is set to be demolished under the Queens Wharf plans which were announced in June last year. Only a proportion of the government workers will be housed in a new headquarters at 1 William Street.

The latest lease follows a deal in January this year in which the Queensland Government took 7706 square metres also in DEXUS’ AM60 tower.

Acting DWPF Fund Manager, Jonathan Davies said: “As a result of these leases, Queensland Government now occupies 75 per cent of the building, repositioning the asset and securing a high quality future income stream.”

Queensland Government now has the Mezzanine, Levels 2-11, Levels 17-19 and part Level 16 of the building. Rents for that building are around $680 to $700 per square metre while incentives are in the early 30 per cent range. The latest lease deal will begin on July 1.

Knight Frank’s senior directors Campbell Tait and David Howson introduced the Queensland government to DEXUS.

AM60 is now 100 per cent occupied and the weighted average lease expiry has increased over the past six months from 2.9 years to 6.4 years, reflecting both leases.

DEXUS regional general manager, office and industrial Richard Garing said: “The relocation of Queensland government to AM60 coincides with the broader improvement we are seeing in tenant demand for quality office space in the Brisbane office market, which is showing signs of recovery.”

The Brisbane office market is one of the toughest in Australia. After reaching a record vacancy of 15.5 per cent in January last year, the Brisbane office market showed some slight improvement last year to 14.9 per cent.

As part of the major government deal, DEXUS has also signed on engineering firm Worley Parsons to its 12 Creek Street office tower. Worley Parson was in AM60 but will take about 3200 square metres in 12 Creek.

DEXUS Wholesale Property Fund purchased the AM60 office tower in 2014 from LaSalle Investment Management for $161.3 million.

At the time of purchase the 21,000-square-metre tower had a weighted average lease expiry of about 4.3 years.

DEXUS Property Group struck leasing deals for more than 100,000 square metres of office space in the March quarter.

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Inner-Brisbane Development Site Hits The Block

A substantial blue-chip block of land in inner-city Brisbane has hit the block for the first time in 60 years.

The Alex Gow Funerals property is a 5272sq m mixed-use development site at 56 Breakfast Creek Road, Newstead.

Savills national director Peter Tyson said the site was a “high-profile gateway location” to the city in Brisbane’s affluent inner-north.

“The Newstead—Teneriffe—Fortitude Valley axis has arguably become the most desirable development destination in inner Brisbane and is within walking distance to the Gasworks retail and restaurant precinct,” he said.

“Sites of this scale with wide-ranging mixed-use potential in such prime locations are increasingly rare and this site will be seen as a trophy opportunity by residential and commercial developers alike.”


▲ Alex Gow Funerals was originally based in Queen Street, but moved to the site at Newstead in 1963. Image: Alex Gow Funerals 

Savills director of commercial sales in Brisbane Robert Dunne said the site occupied a commanding position on the corner of Breakfast Creek Road and Dunlop Street with “enormous exposure” to passing traffic.

He said the site was close to public transport and offered a high level of amenity for future development projects.

“Newstead has an industrial-chic vibe featuring stylish bistros, dates and craft breweries including other landmark precincts such as James Street and Brisbane’s new Mercedes headquarters,” Dunne said.

Breakfast Creek is undergoing substantial urban renewal of the former industrial hub. Churchill Developments recently lodging an application to develop an eight-storey mixed use building further down the road.

It is understood Alex Gow Funerals, Queensland’s first funeral business, bought the site and moved there in November, 1963.

The “ultra-prime” site offers building potential for residential apartments, retirement and aged care, education and health care, commercial and retail development.

Savills will market the site via an expressions of interest campaign that will close on July 15.


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Commercial Market Update – Brisbane Fringe Cityscope May 2021

The latest research from Brisbane Fringe Cityscope shows in the last three months property sale numbers have decreased and sales figures more than halved. The last three months to the beginning of May 2021 recorded 18 sales for a total of $55.8 million, with $30.7 million for commercial, $2.4 million for commercial strata, $1.8 million for retail, $1.6 million for retail strata and $19.3 million for other.

In comparison, the last three months to the beginning of February 2021 recorded 25 sales for a total of $117.4 million, with $23.7 million for commercial, $5 million for commercial strata, $6 million for retail, $5.2 million for retail strata and $77.5 million for other.

The 12 months leading up to early May 2021 recorded 69 sales for a total of $313 million, more than $225.7 million less than the same time last year.

The table below shows sales recorded for the past eight updates of Brisbane Fringe Cityscope:

Brisbane Fringe Cityscope

Significant sales recorded this quarter total just over $34 million, these sales include:

The former Keating’s Bread Factory site (now used as offices) plus associated car parking at 41 Kennigo Street have been purchased together for $15.8 million by RG Property Fifteen Pty Ltd, associated with RG Property Group. The former factory is located in Fortitude Valley and comprises three mainly single-storey buildings and a two-storey building to the northern end along Warry Street. Peter Court and Mike Walsh of Cushman & Wakefield Brisbane negotiated the sale in conjunction with Jack Morrison and Peter Chapple of CBRE Brisbane.

A four-level office building at 86 Astor Terrace, Spring Hill was purchased at auction for $10.5 million. The building comprises 1,303 sqm of office space over three levels and one level of car parking for 17 vehicles. The sale went to auction through Burgess Rawson’s, Doug Doyle, Jamie Dewe and Adam Thomas.

Also in Spring Hill, Industry House a two-storey, 1,840 sqm office building at 375 Wickham Terrace and associated car parking at 21 Lilley Street were bought for $8.03 million by Wickham Private Pty Ltd, as trustee for Wickham Private Unit Trust. The owner has Council approval to close off part of the laneway which separates the properties. Tim Jones, Sam Byrne and Seb Turbull of JLL Brisbane negotiated the sale.

Brisbane Fringe Cityscope

Properties for sale include:

  • 203-207 Wharf Street, Spring Hill – a 4,695 sqm office building over four levels. The property includes over 67 onsite car parks. For sale by expressions of interest, closing May 12, 2021; agent, Colliers International Brisbane (Adam Rubie, Brendan Hogan, Hunter Higgins).
  • GPO Hotel, 740 Ann Street, Fortitude Valley – a two-storey, 1,345 sqm building originally built in 1887 and extended in 2002. For sale by expressions of interest, closing May 13, 2021; agents, JLL Brisbane (Elliott O’Shea and Tim Jones) and JLL Hotels & Hospitality Group (Tom Gleeson).
  • Amelia Hotel, a two-storey hotel in Fortitude Valley with a ground floor cafe. For sale with an asking price of $3.85 million; agent, Resort Brokers Australia (Nathan Eades).

Properties under contract (conditional or unconditional) include:

  • Lanmor House on Brunswick Street and 52 Amelia Street – 960 sqm across two, two-storey buildings on an 860 sqm site. Under conditional contract; agent, Colliers International Brisbane (Hunter Higgins & Nick Wedge).
  • 105-105A Bowen Street, Spring Hill – a single-storey, 220 sqm office with two tenancies and car parking for four vehicles on site. Under contract with settlement expected in approximately six months; agent, Elders Commercial Brisbane (Luis Nicolaou).
  • 72 Costin Street, Fortitude Valley – a single-storey plus mezzanine, brick office building with car parking for 15 vehicles. Net lettable area, 507 sqm. Under contract unconditionally with a long, one-year settlement period expected; agent, Colliers International Brisbane (Hunter Higgins and Nick Wedge). The property was advertised with a potential leaseback agreement from 9-months to three-years.


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Trilogy buys office warehouse for $10m


Carrum Downs

Trilogy Funds Management has swooped on a 657 sq m office and 4603 sq m high-clearance warehouse, paying $10,025,000. The warehouse at 118 Colemans Road, leased to Tempur Sealy International Inc with 5.3 years remaining on the lease, sold on a 5.5 per cent yield. Tempur was paying rent of $552,198 a year with 3.5 per cent annual reviews, said Cushman & Wakefield’s Andrew O’Connell and Robert Colaneri.


A 42.82 hectare land parcel at 343 McGlone Road sold to a national developer for an undisclosed price in the vicinity of $14 million. Real Properties’ Joe Catanese said the concept masterplan allowed for a net developable area of 31.67 hectares within less than a six-minute drive of Drouin town centre.

Dandenong South

Ten bidders pushed the yield for a factory at 6 Capital Drive to a low of 4.26 per cent amid strong demand. CBRE’s Tim HomesLachlan Ferguson and Ned Murphy steered the auction, which closed when the hammer fell $710,000 above the reserve, at $3.21 million. The property has a five-year lease to Windsor Engineering Group.


Off-market sales are coming back. An investor paid $950,000 for a Sandringham cafe in a deal brokered by Teska Carson’s George Takis. The 222 Bay Road property, within the Sandy Hill 445 resort-style apartment complex, was a strata-titled retail shop with a five-year lease and five-year option.

Clayton South

Rain did little to dampen buyer enthusiasm at Unit 7/ 1 Graham Road. Auctioneer Matt Nichols eventually knocked down the property, tenanted by AAA Plantation Shutters, for $390,000 on a sharp 4.48 per cent yield.


A unit at 12/238 Governor Road sold for $500,000, a rate of $2396 per sq m. Nichols Crowder’s Andrew Pannam said the 216 sq m office warehouse attracted interest from both investors and owner-occupiers.

Narre Warren

Sutherland Farrelly’s Paul Farrelly has sold a showroom at 5/36-44 Lauderdale Road. The 495 sq m property sold subject to a five-year lease at rent of $122,133 a year net. It sold in excess of the quoted price of $2.1 million.


Seven bidders vied for a tenanted property leased to a picture framing business at 60 Glenferrie Road. It fetched $1.7 million on a 3.73 per cent yield through Gorman Commercial’s Jonathon McCormack and Nathan May.



A telco will set up shop on a five-year lease at 219 Elizabeth Street at a rent above the passing rent. The retailer took 50 sq m with a four-month rent-free term on undisclosed rental.


From bank to bar. Hopheads bar and bottle shop will add its hospitality offering to Tenancy A, 53-55 Anderson Street in a former bank building. Fitzroy’s Ervin Niyaz negotiated a 10-year lease with a five-year option for the 140 sq m space at $75,000 a year plus outgoings and GST. Hopheads has two other locations: Point Cook and Altona.


Hopheads bar and bottle shop will add its hospitality offering to Tenancy A, 53-55 Anderson Street. 


Transport services MR Express will relocate to a larger base on a five-year lease at 140 Swann Drive. It moves into the low-site coverage property for an annual net rent of $330,000 plus GST and outgoings, said CBRE’s Tom MurphyRicardo Cappelletti and Fergus Pragnell. The 10,000 sq m site has a 3445 sq m warehouse with office facilities, full B-Double drive-around access, two large loading canopies and a concrete hardstand.


A bubble tea shop will move into 22 Synnot Street. CVA’s Leo Mancino said the tenant will pay $27,000 a year net at a building rate of $415 per sq m.

Kew East

A 141 sq m office suite at 828 High Street has leased to Eyecare Concepts on a three-year term. Gorman Commercial’s Richard Height said the premises fetched $43,000 a year.


The owner of 328 Burwood Road has leased 230 sq m on the ground floor to a local dental clinic for a 10-year period. On the first floor office, migration agents Aussizz Group took a three-year lease. Gorman Commercial’s Richard Height said the combined rent was $150,000 a year.


Jamie Guerra has joined Leedwell Property as a director and equity partner. Mr Guerra joins from JLL.


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