Fund manager Charter Hall has announced a new 15-year long-term lease with Australia's third-largest superannuation fund QSuper at Brisbane Square Tower.
The deal will allow QSuper to consolidate its four Brisbane locations, including Central Plaza 2 and 3 in Eagle Street, its Member Centre on George Street and service operations at Nundah, into one 17,200sq m location.
QSuper had originally planned to move into the proposed $450 million Brisbane Square Tower 2 at the top of the Queen Street Mall.
The proposed development has since been halted by the Brisbane City Council due to temporary planning restrictions, with the council voting in November to place a restrictive planning instrument on the tower site at Reddacliff Place.
Related reading: QSuper Commits to Charter Hall's New Brisbane Square Tower
QSuper chief financial officer Kulwant Singh-Pangly said the deal delivered on the super fund’s objectives for its future workspace.
“This is a great outcome for QSuper, our members and our workforce,” Singh-Pangly said.
“It represents excellent value for money for our members and a significant cost saving.”
“It also brings us closer to where many of our members work.”
“The new lease allows us to optimise service delivery by consolidating our operations and providing members with a new flagship Member Centre.”
Singh-Pangly said the deal also provided critical flexibility for the superfund to adapt its spatial needs if required over the next four years.
Brisbane Square Tower's current blue-chip tenant Suncorp is set to move out by 2021 with QSuper commencing their lease in 2022.
The deal is set to save the fund more than $50 million.
“We are proud to welcome QSuper, Queensland’s largest super fund, as an important tenant customer within our Queensland office portfolio," Charter Hall managing director David Harrison said.
“Following recent office tower acquisitions in Brisbane’s CBD totalling approximately $450 million, we are a committed long-term investor in Queensland with $4.5 billion of investments across office, industrial and retail property sectors,” Harrison added.
Last month, banking and insurance giant Suncorp signed a similar long-term lease in Adelaide taking office space at the newly-refurbished 1 King William Street.
Suncorp is currently seeking to consolidate up to 40,000sq m of office space in Brisbane's competitive office market.
Charter Hall, Mirvac and ISPT are all reportedly interested in securing what would be Brisbane's largest leasing deal.
