Ladbrokes wagers on long-term leasing deal in Brisbane’s rising city fringe office market

Betting and gambling company Ladbrokes has committed to a 10-year lease for office space across two levels at Bowen Hills.

Ladbrokes is riding the rising market in Brisbane’s city fringe.

BETTING and gambling company Ladbrokes has wagered on making a move to Bowen Hills as an increasing number of tenants back Brisbane’s improving city fringe market.

It has committed to a 10-year lease for 3250sq m over Levels 1 and 2 at 25 Montpelier Rd, taking the building to full occupancy.

Mitch Connell from Aegis Property Group, who introduced the tenant and struck the deal, said Ladbrokes had experienced significant growth through the early part of 2018.

“They were in the market looking to consolidate their two existing office premises and 25 Montpelier Rd offered a turnkey fit-out that they could inherit, along with a significant upgrade in proximity to amenity and public transport infrastructure,” he said.

Mitch Connell from Aegis Property at 25 Montpelier Rd, Bowen Hills. Picture: Attila Csaszar

Alceon Queensland and GWC Property Group have partnered for the repositioning and sale of 25 Montpelier Rd.

“We are seeing the fringe office vacancy rates contracting quite quickly, particularly for large floor plates and contiguous spaces and we expect this to continue for the next couple of years,” said Alceon’s Todd Pepper.

“We were aware of the Ladbrokes requirement and thought 25 Montpelier Rd was a great fit for them.

“Level 2 had unique features with a good quality full fit-out which mostly suited their operational requirements, and we knew we were one of the only buildings that could cater for their high carparking requirement.

“The large 2000sq m plus floor plates are unique in this area and suited Ladbrokes perfectly.”

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Mr Connell said the transaction reflected a developing theme among large organisations.

“We have recently seen a number of large organisations that were spread over multiple sites co-locate into a larger premises,” he said.

“Tenants are backing the improving market and are taking a view that they will be able to secure subtenants to cover part, if not all of their lease tail.

“This is in essence allowing them to relocate earlier than lease expiry without financial penalty. Examples of groups that have taken that approach recently include Downer EDI, WSP Parsons Brinkerhoff and DXC Technology.”

Mr Pepper said with 25 Montpelier Rd now fully leased, the asset would be made available for sale in Q4 2019 with a WALE of circa 6 years.