World Class Global sells Brisbane tower site
Singapore-listed conglomerate World Class Global will offload one of its major Brisbane apartment development sites, potentially clearing the way for a conversion of the site into a landmark office project.
The group is preparing to sell the 240 Margaret St site in the heart of Brisbane but will press ahead with a similar-sized project at nearby 30 Albert St.
World Class Global is separately nearing completion of the landmark 101-storey Australia 108 in Melbourne, and has already finished the AVANT project in that city, but is looking to lighten its Australian development load.
Commercial Insights: Subscribe to receive the latest news and updates
The $500 million tower’s progress in winning new tenants plays into the takeover battle between Canada’s Oxford Property Group and US private equity firm Blackstone, which are facing off for the $3.4 billion listed trust.
The co-owners lodged plans in May for a $54 million five-storey retail and commercial podium adjoining the tower. The project has already caught the eye of First State Super, which has signed a heads of agreement over 8000sqm.
The latest move represents a major consolidation by the insurance company. QBE’s group operations signed a 10-year lease in 8 Chifley Square in 2013 that covered the top four floors spanning about 2800sq m.
QBE Australia & New Zealand agreed to move its head offices into 4½ floors in the Citigroup Centre in 2014. It leased close to 8000sq m in the building at 2 Park St and its term does not expire until 2027.
The parties declined to comment but IOF said in February that the refurbishment, slated to kick off after IAG’s departure in October, was “on track”. The overhaul is to be complete by early 2020.
The project looms large in the IOF takeover with the vaulting bids for the trust showing that both parties are looking through a predicted fall in the fund’s short-term earnings as it undertakes both the 388 George Street project and works on nearby 347 Kent St.
Rights on nearby 10-20 Bond St will allow Mirvac to buy out IOF, potentially with the backing of Morgan Stanley.
This article originally appeared on www.theaustralian.com.au/property.
