Mater Misericordiae Limited HQ to move to new Newstead tower which has sold for $122m

After more than 100 years in South Brisbane a leading not-for-profit health group will relocate its HQ freeing up its many holdings in the precinct for redevelopment.

Leading health group Mater Misericordiae Limited will consolidate its administration into a newly built head office in Newstead.

Mater will move hundreds of staff, mostly from South Brisbane, into an A-grade 11-storey office building at 14 Stratton Street.

It will be Mater’s new corporate headquarters and provide training facilities.

Frasers Property have started building its Riverlight North apartment tower at its $700m Northshore community

Construction has started on Coles Moggill Village which is the first new shopping centre in the area for almost five decades

They have a 10-year lease and the moved comes after the sale of the building, developed by Silverstone Developments, to the Charter Hall Social Infrastructure REIT for $122.5 million. It is expected to be completed within a few months.

Started by the Sisters of Mercy Mater has been based in South Brisbane since 1911 and has most of its services, including its administration in the precinct.

Mater chief executive Dr Peter Steer said the headquarters will enhance the organisation’s services to the community and allow the opportunity for develop the Mater’s South Brisbane holdings.

The Mater Hospital. Raymond Terrace, South Brisbane which was also the organisation’s headquarters.

“We’re excited to be able to provide a more contemporary environment for our staff and students, and to be accelerating our Mater Hill master plan with this lease arrangement,” he said.

The 9088sq m building was designed by Rothelowman and is on a site previously earmarked for Stage 5 of Metro Properties’ Newstead Central development/

The sale and leaseback deal was struck by Cushman & Wakefield’s Peter Court, Mike Walsh and Fred Le Fanue and the transaction realised a 4.84 per cent yield.

The Stratton office building at 14 Stratton Street, Newstead, which will be .Mater Misericordiae Limited’s new HQ.

The transaction included initially negotiating the purchase of the building on a vacant possession basis from Silverstone Developments. The Mater then structured leaseback to themselves, and on-sold the building.

Mr Walsh said it was a “complex transaction” that leveraged a unique opportunity for Mater to capitalise on current capital market dynamics.

“Achieving a yield of 4.84 per cent, the strong outcome highlights the ongoing resilience of the Brisbane office market,” he said.

Mater is one of the largest not-for-profit employers in Queensland with more than 10,000 staff, and incorporates Mater Health, Mater Education, Mater Research and Mater Foundation with a network of hospitals across the state.