The vendor supplied a rental guarantee of $3.5 million and a contribution to outstanding incentives of $4.6 million. The sale of the office tower alone was apportioned at $291 million which reflected a passing yield of 7.5% and an improved rate of $4,942/m2 of NLA. Law firm, Blake Dawson Waldron, was forced to withdraw from its precommitment to lease 5,300 m2 on levels 36,37,and 38 of the Riparian Plaza due to the delays in the construction of that building.
Lees Marshall Warnick have been named as the final full floor tenant within the recently completed MacArthur Central tower. The 1,616m2 lease is over level 14 of the building for an initial term of 6 years. The rental is undisclosed however is understood to represent a gross effective rental in the order of $270/m2 inclusive of a fitout allowance. Tax Depreciation Specialists The property is now on the market with the developer understood to be seeking offers in the range of $120 million. Purchased as a site ($11.5 million) and development contract, the total acquisition of the centre is in the order of $49 million, reflecting an 8% yield on year 1 income.
The construction is to add 16,000m2 of accommodation to the Homemaker City development with a 2,000m2 pre-commitment to Nick Scali in place. The reported sale of the retail component within the Festival Towers complex for $7.8 million over the 1,027m2 space reflects $7,595/m2 and is indicative of the premium paid for a strong pedestrian location. The leasing market is also active and Suncorp Limited has leased a new CBD flagship store in the Queen Adelaide Building following the expiration of their existing lease at 146 Queen Street.
Suncorp have taken an area of 377m2 for five years. Pillow Talk have also taken a lease over 960m2 the basement area of the building, formerly a food court. contract to Sunland with settlement expected in January 2006. The 9,302m2 site is under contract for $8 million with the developer’s plans understood to entail a mixed use development with the majority of the site residential with a smaller commercial and home office component.