Watpac and the Seymour Group have quickly snapped a prime property in Brisbane for $40 million from auto retailer group, AP Eagers.
This property was on the market 14 days ago at which stage Watpac inspected the site and decided it was a unique property.
The two-hectare site is located in Newstead, bounded by Breakfast Creek Road, Durong, Ross and Edmond Streets. In addition, the property has a large Breakfast Creek Road frontage.
Watpac’s managing director Greg Kempton said rarely do sites of this significant size located on main arterial roads become available.
“The large site area will enable the creation of an office park oasis situated on the fringe of the CBD. The view corridor which looks over Newstead Park gives beautiful views of the Hamilton Reach section of the Brisbane River.
“This would be one of the best property development opportunities in the market for the last three years and further supports Watpac’s investments in Newstead and Fortitude Valley. The purchase continues Watpac’s strong association with Ann Street, including the future plans for the Waterloo Hotel and its award winning Head Office at 1024 Ann Street.” he added.
A.P. Eagers’s chief executive Martin Ward said the site was surplus to the group’s needs. The sale will yield a before tax profit of approximately $14 million with a potential additional uplift factor of up to $3 million dependant on specific Development Application criteria.
“The company is presently utilising a portion of the sold property for three of its motor vehicle retail operations, which will be progressively relocated to other company owned sites over the next 15 to 18 months,” Ward said.
Seb Turnbull and Geoff McIntyre of Jones Lang LaSalle negotiated the transaction, on behalf of the joint venture.
Settlement is set down for December 21, 2006.
By Nelson Yap
