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News release


Sale of Qantas Global Headquarters near Sydney Airport

The 2.7 hectare site at 203 Coward Street, Mascot has four separate buildings and is leased to Qantas until 2020

SYDNEY, 12 JULY 2010 – In the largest Sydney suburban commercial sale so far this year, the Qantas Global Headquarters at Mascot has been sold by CB Richard Ellis and Jones Lang LaSalle in a deal which values the buildings on completion of a proposed refurbishment at $170 million.
The property was sold to Brisbane-based Cromwell Group.  The vendor was a joint venture managed by Trafalgar Managed Investments Limited.
The campus style office park provides office and warehouse accommodation and is secured by a new 10 year lease to Qantas Airways Limited.  Under the sale deal, Cromwell will pay a $25.6 million incentive to Qantas which will be used towards refurbishments to the buildings, including an upgrade of energy efficiency.
Trafalgar’s CEO, Braith Williams said, “We have worked closely with Qantas management for sometime to structure a transaction that was a value add for all parties. We hand over this property to the new owners with the benefit of a new 10 year lease and plans for a refurbishment and upgrade of the buildings to improve their energy efficiency and to increase the amenity of the workplace for employees.”
CEO of Cromwell Corporation, Paul Weightman said, “Qantas HQ is an asset which will both enhance Cromwell’s existing portfolio quality and provide an additional weighting to the Sydney office market.  The property presents an opportunity for Cromwell to work cooperatively with the tenant to deliver a facility which will meet their requirements well into the next decade, and potentially to further expand the lease term beyond 10 years.”
The 2.7 hectare site with four separate buildings, including an office warehouse, sold for an initial yield of 8.3%.  Agents Robert Harris and John Macree from Jones Lang LaSalle and Scott Gray-Spencer and Joshua Charles from CB Richard Ellis managed the sale.
Mr Gray-Spencer said, “This is a significant price for an asset of this type.  Assets of this size and capital value, with an iconic global tenant and long lease, are rarely offered to market.  The property has a strategic position in the heart of Sydney’s Kingsford-Smith Airport precinct. Cromwell will benefit from excellent lease income rental growth which will be at a minimum of 4% pa.”
Mr Harris said, “The buyer pool for this investment opportunity was strong from both local and offshore buyers, which demonstrates the ongoing demand for quality properties that are secured by quality tenants such as Qantas, particularly with long term leases.” 

The Mascot site currently houses 40,250 sqm of office and 6,296 sqm of warehouse space, providing a total net lettable area of 46,546 square metres across the four separate buildings.