SYDNEY-The Brisbane-based Cromwell Group has purchased the four-building Qantas Global headquarters from Trafalgar Managed Investments Ltd. Cromwell will pay more than $143 million for the property, and has also promised to give Qantas $25.6 million for improvements to the facilities.
Qantas is the sole tenant of the 500,000-square-foot complex, which includes more than 67,000 square feet of warehouse space. The tenant recently signed a new 10-year lease for the property, which is a block away from Sydney Airport.
A team from Jones Lang LaSalle and CB Richard Ellis managed the sale. John Macree from JLL tells GlobeSt.com that the deal really reflects the confidence in the Australian property market. He says while the country’s economy is strong, global economic stress had threatened to keep deals below $50 million. “Surprisingly, there was very strong interest in this property,” Macree says.
Trafalgar, a consortium of investors, had purchased the property 10 years ago and it was time to sell, Macree says. The arrangement for the refurbishments, including an upgrade to energy efficiency, was just a sign of a good relationship between tenant and owner, said Trafalgar CEO Braith Williams in a statement.
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