Commercial
Wallets out for Westpoint assets
Australian Financial Review - Friday 7 July 2006
The carve-up of the Westpoint empire is gathering pace following the sale of the failed developer’s Panorama Sky site in Brisbane.
Listed Queensland developer Devine fought off a range of bidders to pay $11.1 million for Westpoint’s Ann Street land, which is earmarked for the group’s first office tower.
More sales are expected as receiver KordaMentha tries to claw back funds for up to 4000 investors estimated to have lost $320 million when Westpoint collapsed.
In North Sydney a deal is pending on Westpoint’s former telephone exchange site, worth more than $24 million.
Buyers are also circling what was seen as the jewel in Westpoint’s crown: the Emu Brewery site in Perth that could be worth between $35 million and $40 million.
The buyer of that site is expected to be known next week.
KordaMentha is also negotiating with an unidentified multinational property company on the sale of Perth’s Paragon Arcade, which is expected to sell for more than
$25 million.
The strong property investment climate has been a boon for Korda- Mentha, which has achieved a price at the top end of early estimates for 333 Ann Street in Brisbane.
Colliers International agents Ken Lucht and Bruce Baker negotiated the sale to Devine, which is planning a $125 million office project.
While the site is approved for a mixed use project, Mr Lucht said none of the bidders had residential schemes in mind.
All of the interest had centred on the potential for an office tower or a mixed office and hotel scheme.
‘‘The vacancy factor for A-grade office premises would currently be sitting at 0.5 per cent, which equates to a critical shortage of options available to tenants,’’ Mr Lucht said.
Devine managing director David Devine said the group’s planned office project could be completed by mid-2008 to capitalise on the city’s record low vacancy rate.
Westpoint bought the 1563 square metre Ann Street site four years ago for $5.8 million and later spent about $3 million on structural works.
Devine is planning a 25-level office tower which would comprise about 16,500 square metres of space.
The complex, designed by architects ML Design, would incorporate the historic two-level facade of the Robert Exton and Co building.
The deal comes as Devine diversifies its business and moves into commercial and industrial development as well as funds management.
Jim Watson was recently appointed as the group’s national commercial manager, to drive projects such as 333 Ann Street.
The tower will boost Devine’s work book to more than $1.9 billion taking into account major mixed use developments such as the $200 million Hamilton Harbour project in suburban Brisbane.
Devine paid $19.5 million last week for the Hamilton land, better known as the Butter Board site.
Kathryn House
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