This article is from the Australian Property Journal archive
CENTURIA Capital Group is moving ahead with plans to sell the KSD1 office complex in Hamilton, the national headquarters of Domino’s Pizza, with hopes of $85 million.
Located at 438-517 Kingsford Smith Dr in the city’s north, the property has 9,274 sqm of lettable area across two modern buildings completed in 2013 and 188 car parks on a 15,300 sqm site in Brisbane’s north east.
KSD1 is also home to developer Devine Group, Collins Restaurants Management and Woolworths Group and has a weighted average lease expiry of six years. Over 90% of the gross income is secured by ASX-listed tenants, and 72% of the office component leased to Domino’s and Collins Foods. Woolworths anchors the ground floor retail space.
The asset is held by Centuria Metropolitan REIT (CMA), which mooted the sale last week with its annual results as part of its portfolio repositioning program. KSD1 was most recently valued at $77 million late in 2017 and has a capitalisation rate of 6.25%.
CMA finalised its transition to a pure play office fund throughout the 2019 financial year with the divestment of industrial assets in Granville and Archerfield, while it acquired a portfolio four office assets along the east coast from US-based firm Hines in a major $520.9 million play and settled on the purchase of Target’s new Australian headquarters in William Landing.
CBRE’s Tom Phipps, Flint Davidson and Adelaide O’Brien have been jointly appointed to sell KSD1 with Cushman & Wakefield’s Peter Court and Mike Walsh.
The agents said the property’s highly visible site on one of Brisbane’s busiest arterial roads, linking the airport and Trade Coast with the CBD, would help underpin buyer interest as would the property’s stablished income and six-year WALE.
They added that Domino’s lease until 2028 positions the asset to capitalise on the “super urbanisation” of the $5 billion Hamilton Northshore precinct, set to deliver housing for about 15,000 people and office accommodation for 10,000 workers daily across the 304h hectare site.
Expressions of interest close 19th September.
CMA’s full-year statutory net profit was $53.6 million, with funds from operations of $61.2 million. Its portfolio has a book value of $1.4 billion, occupancy of 98.4% and a WALE of 3.9 years.
