BRISBANE’S FINEST CORE CBD INVESTMENT OPPORTUNITY 08 10 12 THE CORE EXECUTIVE INVESTMENT OPPORTUNITY SUMMARY HIGHLIGHTS 16 24 36 CONTENTS THE THE TENANT ASSET LOCATION COVENANT 42 46 48 FINANCIAL BRISBANE SALE MARKET PROCESS 08 09 400 THE CORE GEORGE OPPORTUNITY STREET 400 GEORGE STREET IS A TROPHY A-GRADE ASSET. With the majority of Brisbane’s truly core assets being held in partial arrangements, 400 George Street represents a generational opportunity to secure a 100% interest in an A-Grade core office tower. Underpinned by blue chip cashflow and located in the prestigious North Quarter precinct, the asset is perfectly placed to capitalise on the improving Queensland leasing market and strengthening economy. Designed by award winning Cox Architecture, 400 George Street is an exemplary A-Grade office asset, surrounded by $12.7billion of city shaping infrastructure projects, set to directly benefit from this unprecedented level of investment. 400 George Street, Brisbane is offered for sale by Expressions of Interest closing 3pm (AEST), Wednesday 12 June 2019. Bruce Baker Seb Turnbull +61 413 013 668 +61 407 374 298 [email protected] [email protected] Flint Davidson Luke Billiau +61 411 183 061 +61 408 066 165 [email protected] [email protected] Tom Phipps Rob Sewell +61 439 034 027 +61 407 243 229 [email protected] [email protected] Thomas Gnieser Stuart McCann +61 405 830 538 +65 8522 1031 [email protected] [email protected] 10 11 EXECUTIVE SUMMARY Address 400 George Street, Brisbane Interest 100% (50% as freehold, 50% as unit sale) Title Details Lot 2 SP172708 Zoning Principal Centre (City Centre) Site Area 2,902sqm Street Frontages 50m to George Street 35m to Turbot Street Year of Completion 2009 Net Lettable Area Office 41,687sqm Childcare 1,319sqm Retail 972sqm Total 43,978sqm Typical Floor Plate Mid Rise (L3-13) 1,360sqm High Rise (L15-24) 1,429sqm Sky Rise (L25-34) 1,446sqm Car Parking 223 bays (197 bays/sqm) WALE (By Income) 4.9 years as at 1 October 2019 Occupancy 99.8% Sustainability 5.5 Star NABERS Energy Rating 4.0 Star NABERS Water Rating 5.0 Star NABERS Indoor Environment Rating 5.0 Star Green Star As Built Major Tenants NLA Gross Passing Office Rent psm Rent Reviews p.a Expiry (incl. recoveries) State of Queensland 21,624sqm (49%) $750 3.50% 31 Dec 2026 Commonwealth of Australia - Child Support Agency 8,576sqm (20%) $924 4.50% 29 Sep 2021 Cooper Grace Ward 4,282sqm (10%) $840 4.50% 30 Sep 2024 Average Gross $818psm Passing Office Rent psm Net Passing Income $32,241,875 as at 1 October 2019 Sale Process Expressions of Interest closing at 3PM (AEST) Wednesday 12 June 2019 12 13 CORE INVESTMENT CORE CORE CORE INVESTMENT QUALITY LOCATION FINANCIALS FUNDAMENTALS HIGHLIGHTS NEW GENERATION ASSET BRISBANE CBD’S EPICENTRE A BLUE-CHIP CASH FLOW AN ECONOMIC POWERHOUSE WITH VALUE FOR INVESTORS + A landmark and icon of the Brisbane + $12.7billion of infrastructure including + Secure and diverse cashflow Core CBD market constructed in 2009 the Cross-River Rail (2024), Queen’s underpinned by some of Australia’s + Queensland has Australia’s fastest GSP to Property Council Australia A-Grade Wharf (2024), Brisbane Quarter (2019), best covenants including government growth forecast at 3.4% p.a.(1) for the standard Brisbane Live (2024+) and Brisbane (State of Queensland, Commonwealth next five years fueled by employment Metro (2023) planned for development of Australia), technology (Microsoft), + State-of-the-art design by Cox growth and continued net interstate within 350m of the asset insurance and legal tenants Architecture featuring striking glass migration growth facade, 1,412sqm (approximately) floor + A prominent location dominating the + 4.9 year WALE positioned to benefit + A value proposition to southern states plates and 5 Star Green Star Rating corner of George and Turbot streets with from rental growth prospects as the represented by an average 76 basis approximately 85m of street frontage Brisbane occupier market continues to + Excellent tenant amenity including point yield premium to Sydney and improve extensive retail offering, childcare + Immediately opposite the Queensland Melbourne (3) centre and end-of-trip facilities Magistrates Court and Supreme Court, + No single year expiry for more than 22% + A strengthening leasing market with the and exceptional connectivity to King of NLA until 2026 + North orientated with protected views highest prime gross face rent increase George Square, Roma Street Station across the CBD, Southbank and beyond + Average fixed annual increases of in over a decade at 3.7% in 2018 (3) and and Queen Street Mall 3.88% p.a. largest decrease in vacancy of any + Within the CBD’s North Quarter major Australian CBD in the past 12 precinct – the destination of choice for months of -1.6% (4) Brisbane’s largest tenants and offering 1,412sqm (approximately) floor plates to accommodate large occupiers AS AN ARCHITECTURAL STATEMENT IN THE BRISBANE CITY SKYLINE, 400 GEORGE STREET HAS A DOMINANT PRESENCE AND IS AN EXEMPLARY A-GRADE CORE QUALITY ASSET CHOCOLATE SOLDIER - LOBBY CAFE 16 17 THE 2009 A-GRADE FLOOR PLATES RETAIL COMPLETED IN PROPERTY COUNCIL AUSTRALIA 1,412SQM (APPROXIMATELY) DIVERSE RETAIL OFFERING ASSET OCTOBER 2009 (PCA) A-GRADE STANDARD FLEXIBLE FLOOR PLATES WITH WITH POTENTIAL TO THE ABILITY TO ACCOMMODATE REINVIGORATE LARGE TENANTS VIEWS FACADE 5.5 STAR 5 STAR NORTHERLY ASPECT FLOOR TO CEILING GLASS NABERS ENERGY RATING GREEN STAR RATING WITH OUTSTANDING WINDOWS WITH STEPPED AS BUILT PROTECTED VIEWS CEILING AND CURTAIN GLASS FACADE BARRISTER’S CHAMBERS - LEVEL 33 18 19 OVERVIEW ENTRY FACILITIES RETAIL Sitting opposite the Brisbane Magistrates Court, 400 George The entrance of 400 George Street is a double height raised 400 George Street provides parking for 223 vehicles over four The 400 George Street retail offering is spread across the Street is designed to complement the area to form a gateway foyer featuring an artistic installation made from 3,000 basement levels with access from Tank Street. Within the ground plane and podium. “400Food” offers fast food dining, to the city’s legal precinct. The tower extends over thirty-two kitchen utensils, a work by Brisbane artist Donna Marcus. basement is an end-of-trip facility providing showers, lockers while Public and Chocolate Soldier provide fine dining and levels, including four basement levels, ground level foyer, The intent was to render the foyer as a public rather than and bike cages. Additionally, the property has a childcare café options. With a favourable lease expiry profile, there is mezzanine food court and thirty levels of office above. The corporate space, and it is activated by the restaurant, food centre on located on Level 2. potential to re-invigorate the retail offering in tandem with asset boasts 1,360sqm - 1,446sqm floor plates, which allow court and childcare centre. the evolving surrounding location which will see increased for efficient full floor and part floor tenancies. infrastructure, employment opportunities and foot traffic. ARTIST IMPRESSION - FOOD COURT 20 21 FLOOR PLATES FLOOR PLATES RETAIL (L2): 1,319SQM HIGH RISE (L15-24): 1,428SQM LEVEL 2 LEVEL 20 GOODS SKY RISE CORE VOID LIFT STAIRS GOODS STAIRS HIGH RISE CORE LIFT LIFT LIFT LIFT LIFT TOILET LIFT LIFT LIFT LIFT TOILET TOILET & SHOWER MID RISE CORE LIFT LIFT FEMALE MALE STAIRS VOID FLOOR PLATES FLOOR PLATES MID RISE (L3-13): 1,360SQM SKY RISE (L25-34): 1,446SQM LEVEL 6 LEVEL 29 STAIRS STAIRS GOODS GOODS LIFTS STAIRS LIFT LIFT LIFT LIFT LIFT STAIRS LIFT LIFTS LIFTS TOILET TOILET TOILET & TOILET & SHOWER SHOWER TOILETS TOILETS LIFT LIFT LIFT LIFT COMBINING AN ALREADY CORE LOCATION WITH AN UNPRECEDENTED AMOUNT OF INFRASTRUCTURE, 400 GEORGE STREET IS THE CBD LOCATION OF CHOICE NOW AND INTO THE FUTURE 24 25 THE 300M 120M 350M BRISBANE BRISBANE QUEEN’S LOCATION METRO QUARTER WHARF THE CBD’S 300M CROSS EPICENTRE OF ACTIVITY RIVER RAIL The North Quarter Precinct is undergoing a complete transformation which will see 400 George Street right in the heart of Brisbane’s entertainment, retail and transport precinct, creating significant employment and economic benefits. 300M BRISBANE LIVE 400 GEORGE STREET CROSS RIVER RAIL Distance 300m Estimated Cost $5.4 billion Expected Completion 2024 BRISBANE METRO BRISBANE LIVE BRISBANE QUARTER QUEEN’S WHARF Distance 300m Distance 300m Distance 120m Distance 350m Estimated Cost $944 million Estimated Cost $2 billion Estimated Cost $800 million Estimated Cost $3.6 billion Expected Completion 2023 Expected Completion 2024 Expected Completion 2019 Expected Completion 2024 26 27 400 GEORGE STREET ONLY 300M FROM 400 GEORGE CROSS RIVER RAIL BRISBANE METRO BRISBANE LIVE STREET, THE ROMA STREET STATION WILL EVOLVE INTO ONE Estimated Cost $5.4 billion Estimated Cost $944 million Estimated Cost $2 billion Expected Completion 2024 Expected Completion 2023 Expected Completion 2024 OF QUEENSLAND’S LARGEST The Cross River Rail will incorporate a new six station The Brisbane Metro is a 21km service connecting Brisbane Live could potentially be co-delivered with INFRASTRUCTURE HUBS, route cross Brisbane. As part of this infrastructure, the 18 stations between Eight Mile Plains and Roma the Roma Street Cross River Rail, delivering economic POWERED BY OVER $8 BILLION currently underutilised Roma Street precinct will be Street, and Royal Brisbane and Women’s Hospital and and employment opportunities for decades to come. If completely revitalised. This station is the catalyst of a University of Queensland. With improved travel times realised, Roma Street will become home to an 18,000 OF DEVELOPMENTS. proposed arena which could host major concerts and across Brisbane, tenants of 400 George Street will be seat state-of-the-art indoor entertainment area.