This article is from the Australian Property Journal archive
WARREN Ebert’s Sentinel Property Group has made its second major Townsville CBD office building acquisition in a matter of months, taking its investment in the regional centre since December to almost $45 million.
In the latest purchase, it has paid $15.5 million for the eight-level Central Plaza commercial building at 370 Flinders Street, which is leased to Hutchinson Builders, the Queensland Government as Public Trustee, and QBE Insurance, with a weighted average lease expiry of 4.19 years.
The group bought the River Quays office building in December for $28.6 million, the regional headquarters of Adani Group, despite the uncertainty surrounding Adani’s Carmichael coal and rail project.
It will make Central Plaza the ninth addition to the Sentinel Regional Office Trust over the past 18 months, including River Quays, with a combined value of almost $250 million.
The forecast distribution to trust investors is 9.5% annum from year one, with Central Plaza transacting at a 9.38% passing initial yield.
Ebert said it would deliver returns “significantly above recent transactional evidence” with national sales of CBD commercial buildings recently reflecting yields of below 6.0%.
Central Plaza is close to the $250 million North Queensland Stadium Project, which will be the new 25,000 seat home ground for the North Queensland Cowboys NRL club, and is expected to generate up to 750 jobs throughout the design and construction stages.
Ebert said Townsville is at the epicentre of more than $22 billion worth of projects within the infrastructure, sporting, mining, defence, health and manufacturing sectors.
“Some other significant benefits to the region include the military training agreement between Australia and Singapore, while Surbana Jurong Private, a Singaporean infrastructure group, have set their sights on Townsville for new acquisitions.”
He said Sentinel is seeking more investment opportunities in regional centres such as Townsville, Cairns, Mackay and Darwin.
In October, the Sentinel Regional Office Trust took its investment in Darwin to more than $100 million within 12 months with the purchase of Arnhemica House following that of Jacana House and the Cas Com Centre.
The trust also includes 11 Argyle Street in Newcastle; 200 Creek St, Brisbane; 8 Buller St, Port Macquarie; and 139 Grafton Street in Cairns.
Australian Property Journal
