Honeycombes sells $12.8 million CBD project

Experienced Queensland development company Honeycombes Property Group and its partner the Chapman Group have sold the newly constructed CQUniversity Building in Townsville’s CBD in a $12.8 million deal that settled on March 6.CBRE introduced the Sydney-based private investor to the property following a strong marketing campaign that CBRE’S Darren Collins said drew a “very high level” of enquiry from local and interstate groups.“Many of the groups were impressed by the economic momentum in Townsville and the security of CQUniversity as a tenant,” Mr Collins said.“Honeycombes Property Group’s history developing in the precinct and their relationship with the tenants was also an important factor in the sale.”Following the strong interest received for the property, CBRE is currently working with Honeycombes to take some other Townsville investments to the market.CQUniversity (CQUni), which is seeking to expand its Townsville footprint, commissioned Honeycombes to design and develop a multi-functional 2,592sqm education facility on the CBD site.CQUni holds a 15-year lease on the three-level building which is located within the commercial precinct of Honeycombes’ $450 million Central development located in Townsville’s CBD.Honeycombes Property Group Managing Director Peter Honeycombe said the building design not only took into consideration the CQUni requirements, but also contemplated future uses beyond the 15-year lease.“It was important for us that conversion of the building back into a regular office building was possible and feasible,” Mr Honeycombe said.The project was the first to be approved and completed in Townsville’s 97ha Waterfront Priority Development Area, which will include the city’s new $250 million sports stadium and entertainment centre.Mr Honeycombe said the development had benefitted from the PDA’s fast-tracked development application process, with the entire project from start of construction to delivery taking just six months.“It’s been a great process and it has provided some much-needed construction activity for the city at a time when Townsville is experiencing the beginning of an economic turn-around,” Mr Honeycombe said.“The CQUniversity Building was one of the few construction projects under way in Townsville over the past few months.“We’re also thrilled to have been able to deliver a much needed, state-of-the-art education facility for CQUni in the CBD as part of their expansion.”CQUni’s 15-year lease has three 10-year options and returns an annual net income of more than $855,000, delivering a 6.7 per cent yield for the purchaser.The building accommodates between 150 and 200 students at any time and comprises a ground-level foyer and library area topped by state-of-the-art education facilities on the two upper levels.Queensland-based RCQ Construction was the project’s building contractor.The CQUniversity Building was designed to cater for increased student enrolments at the university with about 1,000 students expected to be using the facility by the end of the year.“Since opening the new campus building, the feedback from students has been fantastic and they’re absolutely thrilled with the new space,” CQUniversity Townsville and North West Queensland Associate Vice-Chancellor Kari Arbouin said.“The CBD location is very much a drawcard,” Ms Arbouin said.The Townsville-based Honeycombes Property Group is a leading and long-established private developer that has delivered an array of mixed-use and staged urban renewal projects in key locations throughout Queensland.