News and Media

$300m surge for Brisbane’s office tower market

Friday, February 15, 2019 Brisbane’s office market is starting the year with a series of major towers worth more than $300 million in play and investors looking to expand their holdings.

Big players Growthpoint, Charter Hall, M&G and ARA bought in the city last year and, in the latest move, Fortius Funds Management and two private funds run by BlackRock have put 201 Charlotte Street on the block.

The A-grade tower in the heart of the Golden Triangle in Brisbane’s CBD could reap offers of about $140m, with the 16-storey building tipped to draw local and offshore players.

Justin Bond of Knight Frank and Flint Davidson of CBRE are marketing the property, which Fortius bought for $81.5m in 2015.

Anchor tenant, resources company Anglo American, recently extended the bulk of its space in the 13,291sq m building until 2028.

A refurbishment also drew tenants including Zurich, Urbane Homes, Credit Sense and Inter­Financial Corporate Finance.

Mr Bond said interest had been strong in Brisbane, particularly for CBD assets, with infrastructure investment, population growth and a strengthening economy attracting buyers, along with the affordability of the city compared to southern capitals.

Elsewhere in the city, Brisbane’s former Wedding Cake building at 310 Ann Street, which once housed Suncorp, is on the block via JLL and CBRE. After the bank left in 2015, the building was overhauled by Cornerstone Properties, which bought it for $63m in 2011. That saw the tower lifted to 18,500sq m with Allianz Worldwide Partners and the Queensland government as tenants, with the property tipped to sell for more than $200m.

Meanwhile, developers are already chasing Brisbane’s historic Edison Exchange that Telstra put on the block via Knight Frank’s Mr Bond. The property at 280 Elizabeth Street is being sold with a seven-year lease, plus a one-year option to the telco.
Read More

Fortius puts food focus on Artamon HQ

Tuesday, February 05, 2019

Fortius Funds Management is upgrading its Artarmon HQ centre with a focus on increased food offerings to cater for expanding residential developments in the area.

Fortius purchased Home HQ in May last year and has been quick to initiate a repositioning strategy for the 10-year-old Artarmon homemaker centre.

Known as The Front Yard, the multimillion-dollar upgrades will see an additional 850 square metres of new, purpose-built space facing Reserve Road with 442 car spaces within the Home HQ centre.
Read More

Fortius buys Brisbane’s The Barracks for $162m

Thursday, November 22, 2018 Fortius Funds Management has bought a major mixed-use complex in Brisbane, known as The Barracks, from financial services company Challenger for about $162 million.

The purchase, flagged by The Australian last month, adds to the flow of capital into the city, with big players including Growthpoint, Charter Hall, M&G Real Estate and ARA buying.

Fortius raised about $85m of equity for the deal, including a major slice from US funds house Heitman, to back the unlisted trust it set up to acquire the asset.

The building was sold by Challenger’s life unit, which bought the complex in late 2014 and improved it, taking its commitment to $153.9m.

Fortius has been active in Brisbane and, with BlackRock, bought and refurbished a 16-storey office tower in Charlotte Street. The firm in 2015 also sold a government-occupied tower in Brisbane’s Fortitude Valley for $50m to local group Keystone.

Fortius director Sam Sproats said the attraction of The Barracks was its mixed nature, with office and retail elements that generated diverse income streams.

Fortius tapped wholesale investors for the remainder of the capital in its unlisted Fortius Brisbane Barracks Trust. Overall, the property is 90.4 per cent leased to office and retail tenants, with a weighted average lease expiry of 5.3 years, allowing for a repositioning.

Mr Sproats said this was in keeping with the firm’s active management style and there was an opportunity for an element of co-working in the building that might suit technology users.

“It’s quite a unique offering in the Brisbane CBD fringe market,” he said.

Fortius could also reset the way in which income is generated by a carpark and cinema to draw more customers to the dining precinct.

Challenger acquired The Barracks for about $143.95m from developers Property Solutions and QM Properties and also remixed the office and retail components.

CBRE’s Flint Davidson and Joe Tynan and Colliers International’s Don Mackenzie handled the latest deal.

Fortius recently bought the Home HQ Artarmon homemaker centre in Sydney’s northern suburbs from US private equity house Blackstone for $140m. Mr Sproats said the group had picked up that centre as part of a play on the area’s increasing urbanisation and density and, in that case, it won the backing of BlackRock and the listed URB Investments.

The firm last year purchased an office tower in Sydney’s Goulburn Street from Singaporean developer Roxy-Pacific Holdings in a $158m play. 
Read More

Fortius targets $160m Barracks site

Monday, October 15, 2018 Fortius Funds Management is planning to purchase a major mixed-use complex in Brisbane, known as The Barracks, from financial services company Challenger in a deal worth more than $160 million.

The deal would be a profitable exit for Challenger’s life unit, which bought the asset in late 2014 and then poured more capital into it, taking its commitment to about $153.9m.

Fortius is now offering wholesale investors the opportunity to invest in its unlisted Fortius Brisbane Barracks Trust, telling them it would acquire the asset at 61 Petrie Terrace on the edge of the Brisbane CBD once it has completed due diligence.

Read More

Albany Creek Village announces refurbishment

Friday, August 31, 2018
  • Albany Creek Village announces multi-million-dollar refurbishment program. New owners to deliver exciting new era for well-established community centre. 

  • The Albany Creek Village shopping centre, positioned in Albany Creek, a northern Brisbane suburb, is set to benefit from a multi-million-dollar capital works and refurbishment reposition that will enhance its standing as the leading convenience and community shopping destination in Brisbane’s north-west.
    Read More