Half stake in $700m tower in Brisbane's North Quay up for grabsThe 205 North Quay project in Brisbane.

Half stake in $700m tower in Brisbane's North Quay up for grabs

A half stake in Brisbane’s 205 North Quay office tower, worth about $350 million, has hit the market as institutional investors focus their attention on newly constructed buildings.

The long-term value of the tower, being developed by Cbus Property and Neilson Properties and still under construction, has been underpinned by a pre-lease commitment by Services Australia, which will occupy the entire tower.

The prominent riverside building has been designed by architectural firms Hassell, New York-based REX and Brisbane’s Richards & Spence. It is being built by Hutchinson Builders. JLL Queensland’s managing director, Paul Noonan, is brokering it with colleagues Seb Turnbull and Kate Low.

“With the Commonwealth of Australia committing to the office accommodation for an initial period of 10 years, 205 North Quay delivers the strongest investment characteristics available to investors,” Mr Noonan said.

It is the Neilson half stake in the tower which is being offered to the market. The local developer teamed up with industry heavyweight Cbus Property on a 3000-square-metre riverfront corner site, created from the amalgamation of properties at 205 North Quay and 30 Herschel Street.

The tower will rise to 31 levels with 43,700 square metres of office space, a wellness floor and an immense open-air public plaza at ground level. Retail, dining and an auditorium complete the offering. The building is designed to achieve 6-Star Green Star and 5.5 star NABERS ratings.

Natural light and fresh air will be a feature of the tower, which includes an open-air “sky lobby”, terraces to every level and a rooftop recreation space.

“On completion, 205 North Quay will present as a landmark building on Brisbane’s skyline and will no doubt be in the league of Australia’s best buildings,” Mr Turnbull said.

The 205 North Quay offering comes amid rising activity in Brisbane’s market, as investors become more comfortable with the post-pandemic outlook.

Last month, Cromwell Property Group bought its second major Brisbane office building in less than six months, paying $184.7 million for the 24-level tower at 100 Creek Street. On the same street Dexus has snared a buyer for its well-known Blue Tower complex.

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