Realising Value

Toowong Central


Year of Purchase 2019

Acquisition Size $40 million

Target Return >20% p.a.

Asset Class Office Building + Mixed Use Development Site

Passing Yield 2.9% p.a. (fully leased 5.5%)

Project Highlights
  • Acquisition of 1.3ha property consisting of development site and B-grade office tower
  • Property acquired below replacement value
  • Site located in heart of Toowong, opposite Toowong Village
  • Significant upside available through redevelopment

White & Partners has a long track record of acquiring assets in Toowong, achieving returns in excess of 18% p.a. through those projects. Over this time, a positive working relationship with development partner State Development Corporation has been established.

This property near the Brisbane River was attractive due to its size, value, location, and yield improvement potential. Adjacent to Toowong Shopping Village which has undergone a $50 million refurbishment, and approximately 4.2 km from Brisbane’s CBD, the site comprised an office building and a development site on a total land size of approximately 13,102sqm with a total net lettable area of approximately 10,220sqm.

The investment strategy is to be pursued in two stages. Stage one: improving yield via asset optimisation in the office building to enhance income while adding value to the development site by achieving development approval for a mixed use development (residential apartments, retail with focus on entertainment, and commercial office space) and tenant precommitments. Once key milestones are achieved, the next stage commences. Stage two: an assessment of the value of disposal via sale versus development. It may potentially comprise a combination of both the sale of the office tower on Jefferson St and development of the project. The property’s strategic location caters for a wide range of potential uses, given the nearby demand drivers of the Brisbane CBD, Queensland University and Wesley Private Hospital.