Council lands on Charter Hall’s Brisbane Square tower amid city shake out
Charter Hall’s Brisbane Square tower at 266 George Street.
Fund manager Charter Hall has cut a deal with the Brisbane City Council to secure its long-term headquarters in the 40-storey Brisbane Square tower in the CBD.
The council has had a requirement for its 3000 staff in the market since 2021 but elected to stay put in the 33,000sq m it has occupied since the building was completed in 2006.
Its lease was to have expired in 2026 but it was terminated and a new head lease signed late last year which will expire in 2038.
Charter Hall acquired Brisbane Square on George St in 2010 and then leased the remaining 22,000sq m vacated by Suncorp to the Australian Retirement Trust on a new 15-year deal in 2022.
The 40-storey Brisbane Square tower in the city’s CBD.
Charter Hall managing director David Harrison described Brisbane Square as a “landmark” CBD tower with two high quality tenants.
“Brisbane City Council’s lease extension to 2038 underpins the pre-eminence of the asset and the ongoing strength of our tenant customer partnership,” Mr Harrison said.
“As one of the largest investors in Brisbane CBD, we have curated precincts on large sites such as the 8000sq m Brisbane Square site, diagonally opposite the 8200sq m 275 George St and 69 Ann St precinct site, while we are also developing another premium grade asset at 360 Queen St adding to our $2.5bn Brisbane office portfolio.”
Charter Hall is expected to settle later this year on a deal it struck in 2021 to pay $248m to Star Entertainment Group for the Treasury Casino building on George St in a deal that included the Treasury Hotel and underground carpark.
Industry sources say the fund manager is still assessing options for how best to use the building but Brisbane City Council has been identified as a logical user of the space, with its lease on 18,000sq m in Green Square at Fortitude Valley expiring in August 2027.
The council is understood to have told staff it was moving from Green Square but at this stage has not told them where they will go.
The Brisbane CBD has a range of office tower development approvals and a number already under construction.
Work has started on the first stage of Dexus’ $2.5bn Waterfront Brisbane development which includes the North Tower, tipped to be become Brisbane’s tallest commercial tower, while construction is progressing on Cbus property’s 30-storey $660m office tower at 205 North Quay.
Charter Hall and Investa are well into the construction of a 33-level, $480m office tower at 360 Queen St.
