Cash flushed Flight Centre Ltd has picked up Century House at 316 Adelaide Street, Brisbane, for $14 million.
Cromwell Corporation in a joint venture with Citimark Properties had held an option over the prime Brisbane office building for around $13 million in a deal dating back to December last year.
However, Cromwell reached agreement with Flight Centre to assign the purchase to rising Australian owned travel group.
Built in 1986 and refurbished in 1994, Century House is a 13 storey commercial office building with a gross lettable area of 7,515 sqm with 74 carparks on 3 levels of basement carparking; and a ground floor cafe. The Metropolitan North Police regional offices currently occupy 60% (4,656sqm) of the building.
Flight Centre has earmarked the property as strategic Brisbane City outlet.
The Brisbane based Flight Centre, the world’s number one flight discount specialist, is due to settle on the property in December.
Cromwell will receive net revenues of approximately $750,000 as a result of the transaction. Citimark is the largest shareholder in the listed Cromwell.
In its recent annual report, Cromwell announced an increase in revenue of 17% to $8.15 million with funds management up 42% to $6.72 million and a net profit of $599,835.
Assets under management are presently $351 million.
However, Cromwell’s goal, according to its annual report is to to build the value of its funds under management to more than $1 billion by 30 June 2006.
Cromwell’s shares sit at 12 cents.
Flight Centre’s shares closed at $22.40 up 10 cents.
