Endeavour Foundation is selling their national headquarters in Brisbane in a sale and leaseback arrangement via Colliers International’s Expression of Interest campaign closing Wednesday 12 July 2017.
Endeavour Foundation purchased the 4,218sqm A Grade office building at 33 Corporate Drive, Cannon Hill in April 2015 for $17 million with vacant possession. They relocated from the 2,000sqm building next door at 50 Southgate Avenue, as part of their business expansion plans.
“The divestment of this asset is part of Endeavour Foundation’s strategy to transfer our commercial ownership and invest into residential housing that is purpose built for people with disabilities,” said Andrew Thomas, Executive General Manager of Supporter Enterprises at Endeavour Foundation.
“We are catering for the growing demand for this type of housing, spurred on by a significant increase in funding through the Federal Government’s National Disability Insurance Scheme (NDIS).
“Every day we support more than 4,000 people with a disability in Queensland, New South Wales and Victoria to live fulfilling and active lives. The current market doesn’t provide sufficient accommodation to suit people with disabilities, so we want to ensure we fill this gap. In addition to accommodation, we also offer education, supported employment, respite, recreation, training and life-skill development.”
Philip O’Dwyer from Colliers International who is marketing the property said it will likely attract syndicators and private high net worth individuals and trusts.
“Currently in the market, there are limited opportunities to invest into a high quality asset with a reputable tenant who is scaled for growth. We are seeing yields for properties of this quality trending below 7.5 per cent.
“The sale and leaseback opportunity offers a brand new 5 + 5 year lease with Endeavour Foundation, commencing on the day of settlement, with the net annual income $1,621,200 ex GST.
“The building will be fully leased to Endeavour Foundation, however they don’t fully occupy the building so there is plenty of opportunity for their future expansion and growth within the premises.
“It has been my pleasure to work with Endeavour Foundation over the last 18 months and assisting them with their commercial asset divestment strategy.
“This is indicative of the current trend we are seeing in the non-for-profit sector where organisations are strengthening their balance sheet in preparation for the changes brought on by NDIS.”
The A Grade office asset was built in 2007 on the 8,068sqm site within the Southgate Corporate Park. It is located approximately 7km east of the Brisbane CBD, and offers easy access to both inner city Brisbane and northern and southern suburbs via the Gateway Bridge.