Domino’s Brisbane HQ set to reap $85m-plus
The listed Centuria Metropolitan REIT is preparing to sell an office complex in Brisbane’s north for about $85 million as it seeks larger opportunities.
The group is selling the KSD1 complex on Kingsford Smith Drive, in the north Brisbane suburb of Hamilton. It is made up of two modern retail and office buildings that have a combined net lettable area of 9274sqm, with a weighted average lease expiry of six years.
CBRE senior director Tom Phipps says the scarcity of institutional grade stock in the Brisbane market makes KSD1 attractive to buyers.
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“With limited institutional grade stock available in metropolitan markets around the country, and the cost of debt at record lows, we expect KSD1 to receive strong interest from buyers looking for income and growth,” Phipps says.
“The anchor tenant, Domino’s, is committed to the building until 2028, positioning the asset to capitalise on the urbanisation of the $5 billion Hamilton Northshore precinct, which is set to deliver housing for approximately 15,000 people and office accommodation for 10,000 workers daily across the 304ha site.”
The decision to sell follows the Centuria-run trust’s acquisition of the Hines Global REIT portfolio last year, spurring a reweighting.
The site serves as Domino’s national headquarters, and is also home to Devine Group, Collins Restaurant Management and Woolworths Group. CBRE’s Tom Phipps, Flint Davidson and Adelaide O’Brien and Cushman & Wakefield’s Peter Court and Mike Walsh are selling the property.
This article originally appeared on www.theaustralian.com.au/property.
