June 13 2016 -
900 Ann Street: Largest tenant commitment in Fortitude Valley
Consolidated Properties and Charter Hall break ground with Fortitude Valley’s newest landmark office tower for Australia’s largest rail freight company Aurizon.
We broke ground on the 3rd June 2016, marking the commencement of construction at 900 Ann Street, in Brisbane’s Fortitude Valley – a premium $170 million tower on Brisbane’s city fringe.
Queensland Deputy Premier Jackie Trad officiated the soil turning ceremony together with Aurizon Managing Director & CEO Lance Hockridge, our Executive Chairman Don O’Rorke, Charter Hall Head of Office Development Andrew Borger and Archbishop Phillip Aspinall.
The 19,000 sqm, 14 level Premium Grade office tower will play a significant part in Fortitude Valley’s ongoing regeneration and is 100% pre-leased to Aurizon for an initial period of 12 years.
We secured Aurizon as the building’s sole tenant in a deal which represents the largest pre-commitment lease in Queensland since 2013.
Our Executive Chairman Don O’Rorke said the start of construction at 900 Ann Street was a sign of growing market confidence.
“This will be a landmark building for Fortitude Valley and we are delighted that it will deliver up to 1,300 jobs to the Queensland economy as a bonus during the construction phase and 1,700 of Aurizon’s employees will be moving from the City to the Fortitude Valley’ Mr O’Rorke said.
The landmark commercial building will boast a striking contemporary design and market leading workplace innovation including premium grade services and contemporary building amenities set amongst the Holy Trinity Heritage Urban Oasis.
“Consolidated Properties’ core values of innovation, sustainability and community are again embedded in the design of 900 Ann Street.”
Designed by Australia’s leading architect John Wardle, the development will include new food and beverage tenancies and community facilities for the Holy Trinity Church, in addition to the Aurizon office space.
“Aurizon was very deliberate with the location and the building design as our need for flexibility, diversity and collaboration grows” Mr Hockridge said.
“This is a fantastic opportunity to create a workspace for our employees that delivers benefits across all dimensions – cost and efficiency, environmental excellence, and in building an innovative and inclusive culture.”
Charter Hall’s acquisition of the building for approximately $170m represents a 6.5% yield, on a pre-sale and fund through basis.
“Charter Hall’s office development pipeline today exceeds $1.5 billion with major projects underway in Brisbane, Sydney and Melbourne. Our focus is on creating vibrant new precincts in these capital cities and the opportunity to extend our relationship with Aurizon, Consolidated Properties and Hutchinson Builders, will see us create another landmark office tower in Fortitude Valley,” said Andrew Borger, Charter Hall’s Head of Office Development.
We secured a 110-year lease for the site, from the Anglican Church, in a deal which secures the long term future of the existing Church building.
“We are pleased that for the church landholders, the development provides an enduring capital base for the church, which will sustain it into the future,” Mr O’Rorke said.
The development of the precinct, encompassing an entire city block, adopts an integrated approach, acknowledging the existing activities and presence of the church on the site. A pedestrian connection through the site will provide a transition space between church and commercial activities.
Mr O’Rorke said the 900 Ann Street project was an extension of the relationships between Consolidated Properties, as the developer, Aurizon as the tenant, Hutchinson as the builder and Charter Hall as the financier and owner.
Aurizon is currently tenanted in a Charter Hall-owned building at 175 Eagle Street. This building, which is also our headquarters, was originally developed by us and built by Hutchinson Builders.
The start of work on 900 Ann Street heralds our second Brisbane landmark project fronting Ann Street presently underway with both projects designed by the team at John Wardle.
Construction has also commenced on its 40-storey Brisbane high-rise apartment tower Spire being developed as a joint venture between ourselves and Qualitas with financial backing from Japanese bank SMBC. All 340 apartments in the $200 million tower sold in a fast-selling apartment release last year.
Like 900 Ann Street, Spire is in close proximity to a church and its name is inspired by the nearby St John’s Cathedral, also on Ann Street.
Construction is expected to be completed in 2018.