- The building was previously the Virgin Australia headquarters
- Building C leased to Fujifilm Business Innovation Australia
- Located in inner-north Brisbane
Charter Hall Long WALE REIT (ASX: CLW) has announced Building C, 56 Edmondstone Road, Bowen Hills has now been leased to Fujifilm Business Innovation Australia.
Located some ten minutes north of the CBD in Brisbane’s inner-north, the entire property was previously the Virgin Australia headquarters. Following the airline’s voluntary administration, the property was vacated in September 2020.
CLW purchased the property in December 2017 from Virgin Australia for $90.8 million. The company conducted a $94.1 million raise to fund the acquisition, with an initial passing yield of 6.9% and a 6.8% capitalisation rate.
Charter Hall Group made up $19.2 million of the raise.
Built in 2008, the property is described as an A-grade property, built as in a “modern ‘campus style’ commercial office building.
The three buildings comprising 56 Edmondstone Road have a total floor area of 12,427 square metres, the Fujifilm leased Building C is 2,864 square metres spread over three levels and a basement.
The remaining buildings A and B have 5,643 square metres and 3,920 square metres of floor space respectively.
Charter Hall Long WALE REIT said it expects the lease will have a positive impact on the valuation of the property, CLW fund manager said, “It’s pleasing to be able to announce today’s leasing success at 56 Edmondstone Road, Bowen Hills. It takes place against a backdrop of reduced tenant demand and uncertainty arising from the COVID-19 environment.”
Mr Anger added that “It reflects the attractive location and amenity available at this property and is the result of a concerted effort by Charter Hall to improve the occupancy and WALE at this property.”
CLW re-affirms its previous FY22 Operating EPS guidance of growth of no less than 4.5% over forecast FY21 Operating EPS of 29.2 cents per security.