Boutique property group Domain Property Funds has bought Austcorp’s two SW1 commercial towers development in South Bank, Brisbane for $96 million.
SW1 is located in the South Bank precinct on Melbourne Street, adjacent to the Brisbane Convention and Exhibition Centre.
The purchase represents a yield of 7.15%.
The building was designed by architects Cox Rayner and comprises 19,500 sqm of lettable area and was 95% committed prior to completion.
Fashion chain Colorado will anchor stage of SW1 as their Queensland headquarters for all their brands, including Colorado, Jag and Mathers.
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.
SW1 is part of $209 million retail and commercial development.
The entire SW1 development is a component of a masterplan development and joint venture between Austcorp and Brisbane developers Property Solutions and Urban Plus.
The development on the former 1.8 ha Mazda site, is where South Bank meets the West End.
The masterplan also includes the Sw224 residential apartments and townhouses.
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,” he added.
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.” Thompson said.
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 750 metres 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,” he added.
By Adam Parsons
