UQ buys office space in Toowong as the St Lucia campus under goes and extensive capital works program

A leading Queensland university has secured office space outside its main campus while it undergoes an extensive capital works program.

Christian Sandstrom and Matt Barker in front of the office building they sold to UQ at 74 High St, Toowong. Picture: AAP image/John Gass

THE University of Queensland has secured office space outside its St Lucia campus while its long-term home undergoes an extensive capital works program.

UQ acquired the vacant office building at 74 High St in the heart of Toowong’s commercial hub after an expressions of interest campaign run by Knight Frank’s Christian Sandstrom, Matt Barker and Ben McGrath.

Big turnout tipped for UQ master plan meeting

University of Queensland master plan to boost public transport and on-site student beds

University of Queensland property and facilities director Steve Dickson said the purchase would help meet the university’s project planning and space requirements during a five-year capital works program at its St Lucia campus.

“It’s proximity to St Lucia with good transport links will ensure that it remains a strategic part of our estate planning into the future,” he said.

The building has over 4000sq m of net lettable area (NLA) with basement carparking for 43 vehicles, and sits on 1827sq m of land.

Knight Frank refused to comment on the price but sources believe it sold for just over $19 million.

According to CoreLogic the property last changed hands in 2014 for $21.5 million when it was then fully leased by Allianz Global Assistance which has now moved into 310 Ann St in the CBD after being in the building for 15 years.

Mr Sandstrom said the campaign attracted strong interest.

“The campaign targeted local and interstate value-add investors, as well as owner occupiers, and it generated a number of inquiries from both types of buyers right up to the closing date,” he said.

“Numerous offers were received at the close of the campaign with particularly strong interest from a number of local companies wishing to acquire the property for their own occupation given the cost advantage compared to leasing their premises.

“The purchase rate of $4356/sq m of NLA is competitive to a number of recent transactions of similar near-city assets.”

Mr Barker said it was a “unique opportunity” to purchase a quality office building in Toowong.

“The suburb enjoys the benefits of easy access to the Brisbane CBD, abundant retail amenity and access to numerous forms of public transport, and has remained an extremely popular near-city destination for commercial office tenants.” he said.

“The area surrounding 74 High St is continuing to experience valuable development and investment, and has the potential for redevelopment.”