Share:

14 Stratton Street Newstead sold for $122.5m in two-tiered deal

Peter Court • 09/10/2020

Peter Court, Mike Walsh and Fred Le Fanue from Cushman & Wakefield’s Middle Markets team exclusively managed the off-market deal, which ultimately comprised a dual transaction. This included initially negotiating the purchase of the 9,088 sqm building on a vacant possession basis from Silverstone Developments, the Mater then structured a 10-year leaseback to themselves, and then onsold the building with a contemporaneous exchange.

14-Stratton-Street-Newstead

The site is currently being developed with the construction of a A-grade, 11-storey building with 5-star NABERS rating, slated for completion in June Quarter 2021, which will form Mater’s new corporate headquarters and provide training facilities. Mater is one of the largest not-for-profit employers in Queensland with more than 10,000 staff, and incorporates Mater Health, Mater Education, Mater Research and Mater Foundation with a network of hospitals across the state.

Mike Walsh, Director and Joint Head of Middle Markets, Cushman & Wakefield, said: “This was a complex transaction that leveraged a unique opportunity for Mater to capitalise on current capital market dynamics. Achieving a yield of 4.84%, the strong outcome highlights the ongoing resilience of the Brisbane office market.”

Peter Court, Director and Joint Head of Middle Markets, Cushman & Wakefield, added: “We continue to see the market emphasise the importance of strong tenant covenants and tenure, which was has remained heightened throughout the COVID-19 pandemic. The end result of this deal was particularly pleasing.”

David Harrison, Charter Hall Group Managing Director and CEO, commented: “We are excited about establishing a relationship with Mater as a major tenant customer within our growing Social Infrastructure portfolio, further reinforcing our commitment to grow our reach with major providers of Social Infrastructure services.”

Dr Peter Steer, Mater CEO, said: “the new office location will enhance the organisation’s services to the community as well as creating capacity for further development at Mater’s South Brisbane site.”

We are excited to be able to provide a more contemporary environment for our staff and students, and to be accelerating our Mater Hill master plan with this lease arrangement.”

“Importantly, our new location will also enable us to move forward with innovative new approaches to health, education and research in support of our Mission for the community.”