Townsville commercial asset proves attractive investment option to southern investors
A prime Townsville CBD commercial asset which will accommodate Commonwealth Government staff for the next ten years has been snapped up by Sydney-based investment firm PortNordica.
10 Dec 2019
A prime Townsville CBD commercial asset which will accommodate Commonwealth Government staff for the next ten years has been snapped up by Sydney-based investment firm PortNordica. The sale of the 11 Liverpool Place property was struck a yield of sub 6%.
The four-storey complex is the fourth commercial building to be constructed within Honeycombes Property Group’s $450 million master-planned precinct, Central, within the Townsville CBD. It follows the completion two years ago of CQ University’s Townsville campus.
The new, purpose-built building will be solely occupied by the Australian Taxation Office under a 10 year lease until 2029 with 5 + 5 year options, providing tenure until 2039. The 5,936 square metre building features end-of-trip facilities and has a 4.5-Star NABERS Energy rating. The government organisation’s significant workforce will also benefit from the precinct’s existing infrastructure including restaurants, shops, gyms and cinemas.
Developer and Managing Director of Honeycombes Property Group, Peter Honeycombe suggested staff would further benefit from the building’s location near key activity precincts including North Queensland Stadium which is due for completion in February 2020.
“The building is located within Townville City Council’s Waterfront Priority Development Area and, as such, we have worked in conjunction with Townville City Council to deliver extensive landscaping, civic works and waterfront walkways to deliver activated pedestrian connections to the CBD and the new stadium,” Mr Honeycombe said.
CBRE’s Brisbane office ran the competitive Expressions of Interest campaign.
CBRE Associate Director Darren Collins noted; “The campaign drew significant interest and offers from interstate, demonstrating the confidence of interstate buyers in the Townsville region.”
The acquisition will not be PortNordica’s first foray into the Townsville as they hold a portfolio of caravan and manufactured home parks which includes Secura Lifestyle Lakes Caravan Park and Secura Lifestyle Currajong and Magnetic Gateway Caravan Park, Cluden.
Considered the gateway city to Queensland’s mining industry, Townsville is one of the most diversified economies in Australia with strong Government administration, education, defence, resources and tourism industries.
Mr Bruce Porter, Director of Port Nordica Director said; “This was a rare opportunity to acquire a brand new, Government backed and fully leased asset promising secure and long-term cash flow.
Townsville‘s economy is recovering and long term economic growth is attracting strategic investment. This is underpinned by large infrastructure projects such as the water pipeline duplication, the Singapore defence deal, port channel widening and increase resource sector activity,” Mr Porter said.For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.