Sale campaign unlocks potential for significant Brisbane development

​Brisbane, 17 February 2016 – The prominent IBM building in Brisbane has been listed for sale in a move that will potentially unlock a significant CBD redevelopment opportunity.

CBRE’s Bruce Baker, Flint Davidson and new recruit Tom Phipps have been appointed to steer the sale campaign for the A-Grade quality tower on behalf of private Brisbane company Harburg Investments.

Mr Davidson said the campaign was expected to generate significant interest, both locally and offshore - and in particular from Asian groups targeting Australian development and core plus repositioning opportunities.

There is potential to develop up to 50,000sqm of gross floor area on the site, subject to the relevant planning approvals. This could encompass multiple uses, including residential, student accommodation, medical uses, a hotel or commercial office space. Furthermore the building has recently undergone a significant capital expenditure program which will assist the leasing repositioning of the asset.

“The existing building is situated on one of the highest sites in the Brisbane CBD, affording panoramic views over King Edward Park towards the Brisbane River. The location near Brisbane’s major retail and transport amenities will be one of the key draw cards, with buyers expected to focus on opportunities to either reposition the existing asset or redevelop the entire site,” Mr Davidson said.

Cox Rayner architects have developed a residential development design which illustrates the potential of the 1,349sqm site to be re-developed for alternative uses.

Mr Baker added that student accommodation would be another potential use, particularly in light of Brisbane City Council’s stated goal of providing 10,000 additional student rooms in the CBD.

The site is also adjacent to the Spring Hill medical precinct, which could underpin interest in converting the building for medical use.

He also noted that the quality of the existing 11,415sqm office building would mean the campaign would appeal to counter cyclical investors seeking to capitalise on a forecast recovery in the CBD leasing market over the medium term.

Over $7 million has been invested in building refurbishments and upgrades, including a new ground floor lobby and foyer, two new chillers and a refurbishment of all the lifts amenities on every level.

This will minimise the need for future capital outlays and ensure maximum building efficiency and performance.

At present, IBM Australia is the building’s major tenant, providing 70% of the total building income. IBM Australia is a subsidiary of NYSE-Listed IBM, one of the largest companies worldwide with a market capitalisation of approximately US$125 billion - providing blue chip holding income to an incoming investor.