Developer sells management rights in Brisbane’s Spire Residences apartment tower for $9 million

The management rights in the award-winning Spire Residences apartment tower in the Brisbane CBD have been sold for $9 million.

A consortium of Queensland-based investors has paid $9 million for the management rights to Consolidated Properties’ Spire Residences apartment tower.

DEVELOPER Consolidated Properties Group has struck a towering management rights deal in the heart of Brisbane’s CBD,

It has sold the management rights — along with eight apartments — in its Spire Residences high-rise apartment development at 550 Queen St for $9 million.

The recently-settled sale to a private consortium of Queensland-based investors included the caretaking rights to the building and its grounds over the next 23 years and a property management rental roll of more than 200 apartments.

Eight apartments also secured by the consortium will be added to the rental pool.

The 40-level Spire Residences features a total of 340 one and two-bedroom apartments, along with on-site facilities including a rooftop infinity edge pool and entertainment deck, gym, cinema and library.

Completed in September 2017, the tower has been recognised with multiple design and architecture awards, including the Residential Architecture — Multiple Housing accolade at last year’s Queensland Architecture Awards.

Spire Residences at 550 Queen St in the Brisbane CBD.

Consolidated Properties executive chairman Don O’Rorke said the management rights deal was evidence of the continued confidence in the inner Brisbane apartment market.

“To secure this deal at $9 million is a strong show of faith in Spire Residences and the inner city market,” he said.

“The consortium saw the opportunity the building represented, as one of the few to be completed at the heart of the CBD in recent years, and acted quickly to purchase both the management rights and apartments.

“Spire Residences has been in high demand with renters, particularly young professionals wanting to live and work in the city — so much so that on completion we continued to receive more than 20 new inquiries a week, even after all the available apartments were tenanted.”

Consolidated Properties Group executive chairman Don O'Rorke says the management rights deal reflects the continued confidence in the inner Brisbane apartment market.

Mr O’Rorke said the sale of the management rights would allow Consolidated Properties to fully focus on its pipeline of new projects, including its multi-use urban renewal projects Cornerstone Living in Sunnybank and Yeerongpilly Green.

“We felt the time was right to sell this asset and have full confidence in the consortium of investors who have secured the management rights and who share our positivity in the Brisbane residential market,” he said.

Colin Gray, who is part of the private consortium of investors, said the decision to secure Spire Residences’ management rights had been an easy one.

“When the property came up, it took less than an hour to form the view it was a quality management rights business, with a strong return forecast,” Mr Gray said.

“Purchasing the eight apartments for the rental pool is also a show of our confidence to other apartment owners and allows us to demonstrate that, along with the other owners, we too have ‘skin in the game’.”