Sekisui House Australia is listing its recently completed office building in Brisbane’s fringe as economic conditions in the city continue to improve.
The recently completed Greenhouse office, designed by Blight Rayner, was part of the fifth stage of West Village mixed-use development, which spans 2.6 hectares.
The listing follows the sale of Sekisui’s retail precinct in the development for about $202 million to Centuria Capital Group in January.
Since then Brisbane’s office market has recorded one of the strongest recoveries in the Asia-Pacific, second only to Seoul, tightening from 15.4 per cent to 11.6 per cent since the end of 2021.
The Greenhouse office had reached “significant occupancy” with major tenants including Frasers Property, Workspace365 and Commerce Vision.
The six-level property has a net lettable area of 5850sq m on a 2409sq m site at 9 Wilson Street, West End, with 90 basement car parks and typical floor plates of 1030sq m.
Greenhouse was reportedly valued about $76 million when it topped out mid-2022, while the entire precinct was valued at $1.2 billion.
Market sources told The Urban Developer it was likely to fetch near that value.
Sekisui House Australia chief executive of apartments and developments Hide Seguchi said their intention with the building was to harmonise nature, amenity, community and convenience.
“It’s perfectly located to offer the ideal work-life balance for staff who are now returning to the office in a post Covid-environment and are focusing more on lifestyle benefits,” Seguchi said.
“We’re proud to have developed a sustainable offering that’s more than just a workspace; it’s a gateway to a balanced work-life model, and the strong market acceptance from industry leading tenants really speaks to that.”
Knight Frank’s Justin Bond is managing the expressions-of-interest sale along with Blake Goddard and Matt Barker and CBRE’s Tom Phipps, Peter Chapple and Jack Morrison.
“Greenhouse has delivered the highest standard of corporate amenity, prestige and ESG initiatives, which are unrivalled in the Brisbane fringe market,” Bond said.
“The property has strong lease covenants with four premier fringe occupiers, and a diverse tenant mix and lease-expiry profile, making this a very solid investment for any domestic or foreign investor.”
The Greenhouse building also has informal meeting zones on the ground floor, rooftop sky garden, end-of-trip facilities for 50 bicycles and 44 lockers.
The property is being sold with a WALE of more than five years, with an estimated fully leased net income of about $4 million.
Article source: Queensland Property Investor
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