This article is from the Australian Property Journal archive
Opus Capital Group has bought the Cairns Corporate Tower for $41.5 million, for its new Opus Income & Capital Fund No. 21.
The Cairns Corporate Tower is an A-Grade office tower with a net lettable area of 14,900 sqm.
The building is located in Cairns CBD, bounded by Lake, Spence and Grafton Streets and is adjacent to the Cairns Convention Centre and Cairns Central Shopping Centre.
It is currently tenanted by government departments – Main Roads, Queensland Transport and Workcover Queensland, and the private sector including National Australia Bank, PricewaterhouseCoopers and KPMG.
The Opus Income & Capital Fund No. 21 also includes Zurich House on the Gold Coast as a seed asset.
Zurich House is a 10-storey office complex located in the Bundall, Gold Coast and which was recently valued at around $13.5 million.
In addition to Zurich House, Opus had also finalised negotiations on another asset for the fund – a prime 16-storey commercial office complex in the Cairns CBD.
Opus Capital chairman Tony Moody said Cairns is a strong growth centre with excellent prospects for the future.
“The recent completion of the Cairns CBD Revitalisation Strategy and plans for the integration of the CBD with the $70 million Cityport development with its proposed large-scale, mixed use development and $44 million Esplanade transformation, all combine to create a vibrant city and a vibrant property market,” he added.
The Opus Income & Capital Fund No. 21 takes the total number of funds managed by Opus to 11, comprising a portfolio of offices, industrial and retail assets, and development properties, valued at approximately $300 million.
The unlisted, open-ended Opus Income & Capital Fund No. 21 will have an initial capital pipeline of $50 million, which will be used to buy commercial property assets.
Moody said the open-ended nature of the fund provided the flexibility to review and analyse opportunities as they arose.
He added there are significant advantages to investors in this style of fund including access to regular monthly returns generated through the income earned from the properties within the portfolio, as well as the potential for future capital growth as the portfolio expands.
Moody said both the Gold Coast and Cairns properties had met the very stringent Opus Capital Group investment criteria.
The launch of the Opus Income & Capital Fund No. 21 follows on from the company’s launch of a property development fund, F1, in August 2005, which was established to capitalise on the potentially higher returns available from investment in property development.
Moody said while its focus is on Queeland, Opus would continue to look at opportunities across the eastern seaboard and were on the short list to buy two commercial office buildings in Melbourne.
By Adam Parsons
