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Press Releases
18-07-2006
BRB’s Silver sale to Reed Property Trust cintinues Varsity Central boom
BRB Group has announced the sale of its sleek Silver @ The Exchange high tech office development at Varsity Central to the Sunshine Coast-based Reed Property Group in a deal believed to be worth more than $23 million.
BRB Group managing director Bruce Barclay this week confirmed the A-grade office building had been sold by BRB project company, The Exchange Development (No. 1) Pty Ltd to Reed Funds Management Limited (RFML).
The sale, showing a 7.5 per cent yield, follows hot on the heels of Silver attracting blue chip anchor tenant IBM, which has taken up almost an entire floor (1190sqm) of the 6000-sqm technology-focused building for a 200-seat Business Transformation Outsourcing call centre.
It is the first foray into the Gold Coast market by Reed Property Group, a diversified development, construction and asset management company headed by father and son, founder and chairman Harry Reed and managing director Ken Reed.
RFML, a division of Reed Property Group launched in 2003, has secured Silver @ The Exchange to expand the Reed Property Trust, which has a portfolio based on the company’s own Sunshine Coast developments: Chancellor Village Homemaker Centre, Chancellor Village Convenience Centre and Noosa Gateway.
Tory Richards, Director of RFML, said the acquisition provides attractive geographical and sectoral diversification into the Reed Property Trust, adding to the portfolio of quality, income-producing Queensland-based properties.
“RFML is continuing its steady growth and this acquisition is part of a long term strategy that is aimed at maintaining a stable income stream with attractive tax advantages for investors,” Ms Richards said.
Mr Barclay said the sale of Silver, judged among Queensland’s finest commercial buildings in the 2006 Urban Development Institute of Australia (UDIA) Queensland Awards for Excellence, was another major vote of confidence in the thriving Varsity Central commercial precinct at Varsity Lakes.
“In seeking to build the diversity, income base and geographic and sector spread of its portfolio, RFML has quite rightly identified Varsity Central as a premier target,” he said.
Silver @ The Exchange has attracted an impressive line-up of tenants, including IBM, Aon Risk Services Australia, HIA Insurance, Optimal Health Chiropractic and Silver Communities, joining a increasing number of high profile names investing their future in the vibrant new business hub.
They include Goldman Sachs JB Were, Minter Ellison, InQbator, AAPT, Dascom, Cardcall, Billabong and the city council’s new Industry House which will headquarter a range of peak industry bodies.
“Reed recognised the unique combination of advantages – the advanced ICT technology incorporated at Silver, the investment security underpinned by a global tenant like IBM, and the huge appeal of the dynamic Varsity Central precinct,” Mr Barclay said.
Key drawcards for tenants of Silver @ The Exchange are the building’s open, interactive design and staff amenity, superior communications and technology capability, independent back-up power supply, accessible location and easy parking.
Engaging internal and public spaces, with interactive atrium lounges and outdoor wireless-enabled landscaped ‘meeting rooms’ are linked to surrounding commercial, retail, dining and leisure facilities.
“Staff retention is a major issue for companies now, so staff and social amenity are big priorities.”
The Silver sale was handled by Mark Witheriff of CB Richard Ellis, with the buyer introduced by Guy Hasenkam of funds manager Guardian Securities.
Mr Barclay said Silver was more than 70 per cent leased and a tightening of the Gold Coast’s A-grade office market had increased demand, particularly from companies seeking to escape now congested traditional centres such as Southport, Surfers Paradise and Bundall.
“New owners of older A-grade buildings like 50 Cavill Avenue and the Corporate Centre are taking advantage of current lower office vacancies to review rents and improve yields,” he said. “This makes Varsity Central and its brand new facilities a very attractive and competitive value proposition.
“Plus, unlike other areas, this location can accommodate future growth and expansion needs.”
Delfin Lend Lease’s $1 billion Varsity Lakes continues to grab the spotlight on the development stage, most recently taking out the 2006 UDIA Qld Award for Excellence in master-planned communities.
Mr Barclay said positive feedback from tenants and the sale to Reed had prompted BRB to begin detailed planning for stage two of The Exchange, a similar office concept building adjacent to Silver.
In the past five years, BRB has been instrumental in creating the future-proof ICT platform for the Varsity Central business precinct, which includes several of its own projects, among them the first two fibre optic-connected residential complexes, Central Park Apartments and SoHo @ Varsity.
Their investment is also set to continue with a $28 million mixed-use development integrating stylish retail opportunities with ‘urban chic’ apartments soon to be announced.
Reed Property Group is behind a wide range of residential and commercial projects on the Sunshine Coast, including luxury waterfront homes, apartments and gated communities, shopping centres, commercial showrooms, child care centres, taverns and offices.
The group, a multi-award winner, including HIA, QMBA and UDIA honours, and recently debuted at ‘number 18 with a bullet’ on the 2006 top 400 list of privately-owned Queensland companies.
A major focus has been the revitalisation of Maroochydore’s town centre, with the $400 million redevelopment of the Big Top Shopping Centre and landmark residential-resort-retail projects including Aurora, Platinum and m1.
Reed, early this year, also expanded its hospitality industry interests, securing an exclusive deal with Cendant Hotel Group to develop and manage at least 10 new Ramada Hotels throughout Queensland in a $500 million expansion program.
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