333 Ann Street Over 65% Pre-Leased : 12 months ahead of completion
Financial Review , 06/07/2007
Financial services company Freeman Fox has acquired naming rights and preleased levels 19 to 23 inclusive in Devine Limited’s (ASX: DVN) first office tower development at 333 Ann Street in the Brisbane CBD.
Freeman Fox’s lease is just one of many major pre-commitments recently secured for the A-grade office development, bringing leasing in the building to over 65% - a year ahead of its completion.
The $120 million development, which will be acquired by Domaine Property Trust upon completion in June 2008, is expected to be fully leased by the end of the third quarter in 2007 according to Devine founder and Managing Director David Devine.
“The strong leasing to date demonstrates the pent up demand for A-grade space and contiguous floors in the Brisbane CBD,” Mr Devine said. “Leases are currently in advanced negotiations on a further three floors, leaving only three levels available for lease.”
Freeman Fox will relocate from its offices at Waterfront Place and will lease a total of 4,156 square metres on a 10 year agreement with a 10 year option.
In other activity:
• International engineering firm the Robert Bird Group, currently based at the ANZ Centre, has pre-committed to lease floors 5, 6 and 7 totalling 2,561
square metres, on a seven year lease term with a 5 year option
• Accounting practice Hanrick Curran is increasing its presence in the CBD and has leased the ninth floor on a seven year agreement with a 6 year option
• Leading architect firm ML Design, who designed 333 Ann Street, will occupy the eighth floor comprising 869 square metres, in a six year lease with a 5 year option. The firm will relocate from its current offices in 200 Mary Street.
DTZ Brisbane’s Tim Mahony and Scott Taylor and Colliers’ Matt Kearney and Joe Dean are co-leasing agents for the building. Mr Devine said the building is on schedule to be completed mid-2008, when
Brisbane’s A-grade office space shortage is expected to reach an all-time low.
“333 Ann Street is expected to be the first new commercial development to come online in Brisbane next year, providing a net lettable area of 16,685 square metres,” Mr Devine said. “The building is strategically located in the Brisbane CBD, in close proximity to Central Railway Station.”
“Adding to the building’s appeal are the numerous sustainability features being incorporated into its design. “Sixty per cent of the net lettable area will have a daylight factor no less than 2.5 per cent to enhance the quality of indoor working areas, and office lighting will be zoned so that whole floors do not have to be lit unnecessarily.
“Other features include significant bicycle storage and change facilities, no cooling towers to eliminate the risk of legionnaires disease and the limited use of organic chemicals in paints, carpets and sealants to produce healthy working environments.” The building, which is targeting a 4 Star Green Star Rating, will feature four podium levels and parking for 93 cars. The 333 Ann Street development is being built by Devine’s in-house construction team, Devine Constructions. Devine is also providing integrated fit-out services, which will deliver considerable bottom-line and operational benefits to tenants. “Devine is able to provide tenants with a seamless, integrated fit-out process, enabling them to occupy their offices upon building completion. This will create valuable cost and time savings,” Mr Devine said. DTZ Research Analyst, Dr Sacha Reid, said Brisbane’s current vacancy rate is at 0.45%.
“The market is hitting the forecast figures about three months ahead of schedule, indicating the pace of the market,” Dr Reid said. “As a result, existing A-grade stock in the Brisbane CBD is achieving rents of $740 per square metre or greater with no incentives. “On the other hand new projects such as 333 Ann Street are offering a rental discount compared with the existing building market, making these new projects very attractive to tenants.” Dr Reid said 67 per cent of new projects in the Brisbane CBD due for completion up until the beginning of 2009 are already pre- committed. Devine has a current national pipeline of land developments and projects which, when completed and sold, will have an end value exceeding $2 billion. Last week (June 28) the company announced its profit guidance for the 2006/07 year, which is expected to be 10 to 15 per cent above the previous year's result of $18.9 million.
Financial Review -5 July 2007
Freeman Fox’s lease is just one of many major pre-commitments recently secured for the A-grade office development, bringing leasing in the building to over 65% - a year ahead of its completion.
The $120 million development, which will be acquired by Domaine Property Trust upon completion in June 2008, is expected to be fully leased by the end of the third quarter in 2007 according to Devine founder and Managing Director David Devine.
“The strong leasing to date demonstrates the pent up demand for A-grade space and contiguous floors in the Brisbane CBD,” Mr Devine said. “Leases are currently in advanced negotiations on a further three floors, leaving only three levels available for lease.”
Freeman Fox will relocate from its offices at Waterfront Place and will lease a total of 4,156 square metres on a 10 year agreement with a 10 year option.
In other activity:
• International engineering firm the Robert Bird Group, currently based at the ANZ Centre, has pre-committed to lease floors 5, 6 and 7 totalling 2,561
square metres, on a seven year lease term with a 5 year option
• Accounting practice Hanrick Curran is increasing its presence in the CBD and has leased the ninth floor on a seven year agreement with a 6 year option
• Leading architect firm ML Design, who designed 333 Ann Street, will occupy the eighth floor comprising 869 square metres, in a six year lease with a 5 year option. The firm will relocate from its current offices in 200 Mary Street.
DTZ Brisbane’s Tim Mahony and Scott Taylor and Colliers’ Matt Kearney and Joe Dean are co-leasing agents for the building. Mr Devine said the building is on schedule to be completed mid-2008, when
Brisbane’s A-grade office space shortage is expected to reach an all-time low.
“333 Ann Street is expected to be the first new commercial development to come online in Brisbane next year, providing a net lettable area of 16,685 square metres,” Mr Devine said. “The building is strategically located in the Brisbane CBD, in close proximity to Central Railway Station.”
“Adding to the building’s appeal are the numerous sustainability features being incorporated into its design. “Sixty per cent of the net lettable area will have a daylight factor no less than 2.5 per cent to enhance the quality of indoor working areas, and office lighting will be zoned so that whole floors do not have to be lit unnecessarily.
“Other features include significant bicycle storage and change facilities, no cooling towers to eliminate the risk of legionnaires disease and the limited use of organic chemicals in paints, carpets and sealants to produce healthy working environments.” The building, which is targeting a 4 Star Green Star Rating, will feature four podium levels and parking for 93 cars. The 333 Ann Street development is being built by Devine’s in-house construction team, Devine Constructions. Devine is also providing integrated fit-out services, which will deliver considerable bottom-line and operational benefits to tenants. “Devine is able to provide tenants with a seamless, integrated fit-out process, enabling them to occupy their offices upon building completion. This will create valuable cost and time savings,” Mr Devine said. DTZ Research Analyst, Dr Sacha Reid, said Brisbane’s current vacancy rate is at 0.45%.
“The market is hitting the forecast figures about three months ahead of schedule, indicating the pace of the market,” Dr Reid said. “As a result, existing A-grade stock in the Brisbane CBD is achieving rents of $740 per square metre or greater with no incentives. “On the other hand new projects such as 333 Ann Street are offering a rental discount compared with the existing building market, making these new projects very attractive to tenants.” Dr Reid said 67 per cent of new projects in the Brisbane CBD due for completion up until the beginning of 2009 are already pre- committed. Devine has a current national pipeline of land developments and projects which, when completed and sold, will have an end value exceeding $2 billion. Last week (June 28) the company announced its profit guidance for the 2006/07 year, which is expected to be 10 to 15 per cent above the previous year's result of $18.9 million.
Financial Review -5 July 2007
