Media Releases
Devine Pre-Sell Brisbane Near-City office Project For $73.5 Million
Thursday 11 October 2007
Listed diversified property group Devine Limited (ASX: DVN) has pre-sold its near-city A-grade commercial office development in Brisbane, ICB Central, for $73.5 million.
The project, which is located directly opposite the Royal Brisbane and Women's Hospital, has been acquired by the Domaine SEQ Growth Fund (a fund managed by Mirvac) on a "fund-through basis".
The 11,000 square metre ICB Central project, which commenced construction on 3 September 2007, will target a 4.5 Australian Building Greenhouse Rating (ABGR). The development is scheduled for completion in the December 2008 quarter and is being undertaken by Devine Constructions.
Devine's founder and Managing Director, David Devine, said the pre-sale of ICB Central to the Domaine SEQ Growth Fund reinforced the quality of the project and its prime location and immediate access to major existing and future planned infrastructure.
"Tenant interest in the project has been exceptionally strong since the development was launched and we are well advanced with negotiations with a number of them," Mr Devine said.
"The project's 3,279 square metre office floor plates are the largest available in Brisbane and can accommodate almost 300 people per floor.
"This is proving to be very attractive to potential tenants, given the rarity of such offerings in Brisbane's office market, which is dominated by record low vacancy rates.
"ICB Central is also strategically positioned in the emerging Bowen Hills precinct, which is set to benefit from $6 billion in large-scale transport infrastructure projects currently under construction in the area, including Airport Link, North-South Bypass Tunnel and the Northern Busway."
According to the Property Council of Australia's latest Office Market Report, Brisbane near-city (1.3%) office vacancy rates fell to record lows in the six months to July 2007.
Chris Packett, Director of Mirvac's Real Estate Equity Funds, said "ICB Central, located only 2.2 kilometres from the Brisbane CBD, is a strategic investment for the Domaine SEQ Growth Fund, particularly given the rapid growth in the Brisbane near-city market, especially Bowen Hills."
"Bowen Hills is already well established as a key commercial, health, and media hub and will continue to evolve into a dynamic transit-orientated business location with unrivalled connectivity to all areas of wider Brisbane.
"We are very pleased to be completing our second transaction with Devine, following our successful $120 million pre-purchase of Devine's A-grade office tower project at 333 Ann Street in the Brisbane CBD last year," Mr Packett said.
Leasing agents Don Mackenzie and Tom Barr of Jones Lang LaSalle and Tim Mahony and David Prosser of DTZ are marketing ICB Central.
ICB Central will have immediate access to key road, rail and public transport infrastructure, including the $2 billion North-South Bypass Tunnel (NSBT) due for completion in 2010 and the $3 billion Airport Link due for completion in 2012.
ICB Central will offer high-profile exposure to the major arterial road, Bowen Bridge Road, and will include prime ground floor retail space. There will also be basement parking for 136 cars.
ICB Central is situated opposite the 1,400-bay Butterfield Street Metro Carpark, within metres of major bus stations and 800 metres of Bowen Hills railway station, one of only four Brisbane stations through which all train services pass.
Designed by the award-winning Cottee Parker Architects, the project's modern design is highlighted by innovative north facing, break-out decks overlooking the surrounding northern parklands and sporting fields. The spacious floor plates with excellent efficiencies will create enhanced operational synergies between employees and reduce tenant's operating costs.
Devine has a current national pipeline of land developments and projects which, when completed and sold, will have an end value exceeding $3 billion.
The company's expansion into the commercial office sector has achieved strong success and on 13 September 2007 Devine announced plans to develop a $300 million, 35-storey commercial office tower at 145 Ann Street in Brisbane's CBD.
On 29 August Devine announced an after tax profit of $21.367 million for the 2006-07 year, 13.2 per cent up on the previous year's result.
