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QIC Lists Up to $2 Billion of Assets


Fund giant QIC has listed two CBD assets, one in Brisbane and another in Melbourne.

QIC has listed its landmark 80 Collins Street development, as well as its surrounding precinct of properties creating one of Melbourne’s largest-ever office, hotel and retail property offerings.

The second of the listings, located at 61 Mary Street in Brisbane's CBD, is an office tower held in QIC's Government Office Fund.

The listing comes as major government infrastructure projects including the $3 billion construction of Queen’s Wharf, Cross River Rail and the Brisbane Metro start to change the landscape and accessibility of Brisbane's CBD.

The prime CBD assets together are expected to yield north of $2 billion.

Related: QIC Consolidates Four Sites for Major Brisbane Development

QIC's 61 Mary Street in Brisbane could fetch as much as $300 million.
QIC's 61 Mary Street in Brisbane could fetch as much as $300 million.


The 17-level tower at 61 Mary Street has 28,749 sq m of net lettable area and an average lease expiry of more than 10 years.

Over the past several years the tower has undergone a $44 million refurbishment and has been awarded a 5 Star NABERS energy rating.

It boasts one of the most expansive floor plates in the Brisbane's CBD, up to 2,030 square metres.

QIC has appointed Knight Frank's Justin Bond, Ben McGrath and Neil Brookes along with CBRE's Tom Phipps, Bruce Baker and Flint Davidson, to broker the property.

“Fully occupied by the Queensland state government under a lease until 2029, 61 Mary Street is a unique investment ideally located within proximity to the Queens Wharf precinct and the proposed Cross River Rail project,” Knight Frank's Justin Bond said.

“While strong domestic interest continues for Brisbane, throughout 2018 we have also witnessed increasing investor demand from Asia, Europe and the US, with limited availability in the market for CBD assets offering long-term secure income.”

CBRE’s senior director of capital markets Tom Phipps said the sale campaign has come at the right time with a strengthening confidence in Queensland’s property market.

Related: Top 20 Most Expensive Office Markets

QIC 80 Collins Street
QIC's 52-storey 80 Collins Street was once known as Nauru House. Image: Woods Bagot


The second of the two offerings is the precinct controlled by QIC located at the “Paris end” of Melbourne’s Collins Street including QIC's existing 52-storey office tower at 80 Collins Street.

Around that existing tower, and part of the current listing, is QIC's $800 million mixed use development.

The mixed-use tower was designed by Woods Bagot, and Seventh Wave, along with Amsterdam-based UN Studio and Paris-based Jouin Manku.

QIC lodged plans to ­develop the mixed-use complex in 2008, capitalising on ownership of multiple properties on Collins Street.

The project comprises a 39-storey office tower, along with a 300-room hotel – to be operated by NEXT, as well as retail offerings throughout the podium levels of around 5,800 square metres.

"80 Collins will be a destination that honours Melbourne's thriving culture and commerce and is situated at the centre of a globally recognised precinct with a distinct local identity," QIC managing director Steve Leigh said.

The tower, which overlooks the Royal Botanic Gardens, has been designed to achieve a 5-star NABERS energy rating and a 6-star Green Star office design rating.

Multiplex is currently building the new tower, which will have a blue-chip tenants including investment bank Macquarie who have taken a reported 6000sq m of the leasable 43,000 sq m tower.

The total precinct is expected to sell for about $1.8 billion.

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Article originally posted at: https://theurbandeveloper.com/articles/qic-acquisitions-brisbane-melbourne