HSBC's big entrée into property

HSBC Trinkaus has snared its first investment in Australia by paying $210 million for a half share in the 400 George Street development in Brisbane.

HSBC Trinkaus has bought Leighton’s share in the joint venture, the other half share is owned by Grosvenor Australia.

Leighton Properties’ managing director Mark Gray said the sale was consistent with the company’s strategy of de-risking and on-selling developments.

Leighton Properties’ director and Queensland manager Andrew Borger said the Brisbane market is booming and this sale to HSBC Trinkaus is just the start of future international investment.

“Leighton Properties still has an ongoing interest in the project and will continue to jointly manage with Grosvenor the development, construction and leasing until its completion,” he added.

400 George Street is 30% leased with a heads of agreement in place for a further 7,200 sqm to a large private company, taking pre-commitments to approximately 20,000 sqm.

Construction of the 33 level (42,000 sqm) development is well underway by Thiess and on schedule for completion in mid 2009.

Australian Property Journal