This article is from the Australian Property Journal archive
CENTURIA Property Funds has paid $23.3 million for the Southgate Corporate Park at Cannon Hill, 6km from Brisbane's CBD from Mirvac.
Located at 19 Corporate Drive Cannon Hill, the property has a net lettable area of 6,028 sqm with a weighted average lease expiry of 4.84 years. It is leased to Honeywell, Canon and the National Broadband Network (NBN) Co.
Completed in 2008, the property holds a 4.5 Star NABERS energy rating and a high car parking ratio of 1 space per 40 sqm NLA.
The property will be held in one of Centuria’s single asset unlisted property funds, the Centuria 19 Corporate Drive Fund, which is targeting a return of 9.75% in its first year growing to 10.00% in year two. Equity raising is underway.
Centuria Property Fund’s CEO Jason Huljich said the fund will provide strong income with 87% of the building leased to multinational or Federal Government tenants.
“As occupation costs in Cannon Hill are lower in comparison to other fringe markets such as Fortitude Valley, we expect capital growth will be driven by rising rents and tightening capitalisation rates.
“The Canon Hill market is tightly held from a leasing perspective with major tenants such as Westpac, National Australia Bank, GM Holden and State and Federal Government departments such as QBuild, National Archives of Australia and NBN. The attraction of these tenants to Cannon Hill is due to its accessibility to the Brisbane CBD, airport and public transport. The property’s modern construction is highly presentable with attractive environmental and operational efficiencies,” Huljich concluded.
Property Review
