White & Partners identified an opportunity in the fringe Brisbane office market and entered into a joint venture with State Development Corporation to secure a 2,654sqm commercial site for $5.5 million.

Whilst Brisbane had witnessed increased office construction activity, White & Partners recognised that the site benefited from having frontage to Coronation Drive and being adjoined to the busy Toowong Village and main railway station. A car ride to the Brisbane CBD takes 10 minutes.

On securing the site, the existing development approval was varied and optimised. To control costs in an environment of rising construction costs, 40% tenancy pre-commitment was obtained to enable construction under a fixed price contract. Construction was subsequently completed ahead of schedule with all contingency allowance unspent. The balance of the office space was also let prior to the completion of construction.

Upon construction completion, investors’ unrealised gross returns exceeded 50% p.a. Post completion, investors also benefited from equity distributions in excess of 10% p.a., of which a significant portion was tax sheltered by depreciation credits.