Queensland development company Honeycombes Property Group and the Chapman Group has sold the newly constructed CQUniversity Building in Townsville’s CBD with a $12.8 million deal that settled this month.
CBRE introduced the Sydney based private investor to the property following a strong campaign.
Darren Collins from CBRE said they saw a very high level of enquiry from local and interstate groups throughout the campaign.
“Many of the groups were impressed by the economic momentum in Townsville and the security of CQUniversity as a tenant.”
CQUni holds a 15-year lease on the three-level building which is located within the commercial precinct of Honeycombes’ $450 million Central development located in Townsville’s CBD.
Honeycombes Property Group Managing Director Peter Honeycombe said the design of the building considered not only the CQUni requirements but also contemplated future uses beyond the 15-year lease.
“It was important for us that conversion of the building back into a regular office building was possible and feasible,” Mr Honeycombe said.
The project was the first to be approved and completed in Townsville’s 97 hectare Waterfront Priority Development Area, which will include the city’s new $250 million sports stadium and entertainment centre.
Peter Honeycombe said the development had benefitted from the PDA’s fast-tracked development application process, with the entire project from start of construction to delivery taking just six months.
“The CQUniversity Building was one of the few construction projects under way in Townsville over the past few months,” Mr Honeycombe said.
“We’re also thrilled to have been able to deliver a much needed, state-of-the-art education facility for CQUni in the CBD as part of their expansion.”
CQUni’s 15-year lease has three 10-year options and returns an annual net income of more than $855,000 – a 6.7% yield for the purchaser.
Constructed by RCQ Construction, the building accommodates between 150 and 200 students at any time and comprises a ground-level foyer and library area topped by state-of-the-art education facilities on the two upper levels.
The CQUniversity Building was designed to cater for increased student enrolments at the university with about 1,000 students expected to be using the facility by the end of the year.
“Since opening the new campus building the feedback from students has been fantastic – they’re absolutely thrilled with the new space,” CQUniversity Townsville and North West Queensland Associate Vice-Chancellor Kari Arbouin said.
Following the investment success, CQUniversity (CQUni) now seeks to expand its Townsville footprint and commissioned Honeycombes to design and develop a multi functional 2,592 square metre education facility.
Honeycombes already has more than $2 billion in projects that are either completed, under construction or in the pipeline.