- The precinct is a $40 million development
- 96-98 York Street was sold to AOF
- Logan City Council has already signed a 10 year lease for the office spaces
A Beenleigh development was recently acquired by Australian Unity Office Fund (ASX: AOF). The $40 million development was created by investLogan, in partnership with Alder Developments, and is located on 96-98 York Street.
Created as a mixed-use property, The York will serve as the offices of Logan City Council and includes retail and residential.
investLogan Chair Steve Greenwood said the project created 100 jobs during the construction phase, and 140 further full-time positions upon completion in mid-2021.
The development comes as Logan activity takes off, in 2019 and 2020, Google ran autonomous drone delivery trials across the suburbs of Logan, Beenleigh was one of them.
Negotiated by CBRE’s Jack Morrison and Peter Chapple, the sale of The York to Australian Unity was made at $33.52 million, Mr Morrison said “The York offers excellent income security.”
While the development has been touted as a boon for the local community, it may be tough to even get a spot there as the property is already underpinned by a 10-year government lease over the entire office component of the building.
Some non-office spaces remain, what the developers called SoHo – small office or home office – where the ground floor provides for a small business or retail, and the first floor can be used as a studio apartment.
The property has a net lettable area of 4,660 square metres over seven levels, and the capitalisation rate was reported by Australian Unity as 5.75%. AOF Fund Manager, Nikki Panagopoulos, said the new facility “provides long term income certainty with minimal capital expenditure requirements and sustainable initiatives.”