NEWS
Austcorp and Domaine settles on SW1 Commercial Towers
22 June 2006
Developers of the SW1 development in South Bank, Brisbane announced today that the sale of two commercial towers has been settled with Domaine Property Funds Limited for $96 million.
Settlement of the sale of stage one of SW1, jointly developed by Austcorp Group Limited and Property Solutions, sets new benchmarks for the growth of fringe CBD commercial and retail properties.
The purchase represents a yield of 7.15%.
The signature building, designed by architects Cox Rayner and comprises 19,500sqm of lettable area, was 95% committed prior to completion. The initial pre-commitment by fashion chain Colorado for their Queensland headquarters for all their brands, including Colorado, Jag and Mathers anchored the commencement of the project last January.
Other tenants include the Queensland headquarters of Roche Mining, AXA Australia and State government offices.
The retail component includes ERA restaurant, a new offering by restaurateur Bob Hamilton of Circa fame, and a fresh produce market to be known as the Melbourne Street Markets.
Domaine Managing Director, Bruce Baudinet, said: "The SW1 commercial towers are a stand-out project in the Brisbane market. We intend to hold it for the long term for income generation and capital appreciation in our successful Domaine SEQ Growth Fund which has been developed in association with National Australia Bank.
"We are pleased to have acquired the project, which is virtually fully occupied by the time of completion, and we are happy with the rentals achieved, a record for inner south Brisbane."
Austcorp Chief Operating Officer, Greg Thompson, said: "The sale has achieved a very strong yield in the fast growing commercial market in Brisbane."
"It signifies the vitality of Austcorp’s diversification strategy and our capability to deliver top grade commercial developments on time and on budget.
"SW1 has succeeded in connecting South Bank and West End, establishing it as a new commercial and retail precinct on the fringe of the Brisbane business district."
Property Solutions Joint Managing Director, David Blanck, said: "Architecturally, the SW1 commercial towers are very striking buildings and a showcase for all involved. Situated only 750m from the top of the Queen Street Mall, it will create a nexus from the CBD through to West End and catapult the inner south as a genuine proposition for commercial tenancies in Brisbane.
"SW1 and Melbourne Street will be a real drawcard for the inner south of Brisbane just as James Street has been for the north of the city."
Located in the South Bank precinct on Melbourne Street, SW1 is adjacent to the Brisbane Convention and Exhibition Centre and includes a series of walkways and streets providing a corridor connecting South Bank to the West End.
Read more about Austcorp's SW1Go to the SW1 website at www.sw1.com.au
