This article is from the Australian Property Journal archive
ING Real Estate Healthcare Fund is set to build a new facility to house the Australian Red Cross Blood Service in Queensland.
The fund has taken out a 80 year ground lease on the Queensland University of Technology site, who will occupy facilities associated with human movement and bio-mechanics studies and research.
The Australian Red Cross Society will occupy approximately 40% of the 20,000 sqm building on an initial 20 year lease term, with further rights of renewal for an additional 10 years.
The ARCS lease is subject to annual reviews at the higher of CPI or 3% plus a mid-term market rent review. The QUT tenancy represents a further 40% of the premises with associated commercial and retail space accounting for the balance.
The facility is located in the Kelvin Grove Urban Village, an integrated education, health, residential and recreational precinct established by QUT in conjunction with the Queensland State Government, approximately two kilometres from Central Brisbane.
ING Real Estate Investment Management Australia’s chief executive Hugh Thomson said the acquisition is very positive for the fund as it diversifies the portfolio from a geographical, subsector and tenant perspective.
“The acquisition represents a purpose-built facility leased to two leading not-for-profit organisations who are government funded for the provision of essential health-related services and training to the community,” he added.
The project is being undertaken by Baulderstone Hornibrook Capital Solutions for $63.5 million. Completion of the project is expected in the second quarter of 2008.
By Kathryn O’Meara
