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.
Contacts:
David Devine, Managing Director, Devine Limited on (07) 3233
1402
Chris Packett, Manager, Director, Mirvac Real Estate Equity Funds
on (02) 9241 1544
Kathy MacDermott, Rowland on (07) 3229 4499 or 0448 844 508
Sarah Martin, Rowland on (07) 3229 4499 or 0418 748 892