Primewest paid $31.187m for Foundation Place in Walker Corp’s Maroochydore city centre project

An ASX-listed fund manager and investor has snapped up Foundation Place, the first office building developed in Maroochydore's new $2.5bn city centre.

An ASX-listed fund manager and investor snapped up the first office building developed in Maroochydore's new $2.5bn city centre.

Perth-based Primewest paid $31.187m for the newly built A-grade Foundation Place which has ground floor retail in Walker Corporation's masterplanned Maroochydore's CBD.

The state-of-the art Cottee Parker designed asset was speculatively constructed by local developer Evans Long and features 3711sq m of office space and 817sq m of retail with a rooftop deck.

Primewest's executive chairman John Bond said Foundation Place was an ideal addition to its Property Income Fund.

"The Sunshine Coast is a region experiencing enormous growth and we identified this as an excellent opportunity to secure a part of that," he said.

Foundation Place was completely leased prior to settlement and will form the local headquarters for major organisations such as LPE, Calibre Engineering, Commonwealth Bank, Cardno and Walker Corporation.

It would also be home to a range of high calibre local professional services businesses and renowned local restaurateur Tony Kelly's most recent establishments Market Bistro and Giddy Geisha on the ground floor of the building.

CBRE's Jack Morrison and Peter Chapple negotiated the sale of Foundation Place which has a six-year weighted average lease expiry by income, 714sq m to 815sq m floor plates and a 5-star NABERS rating. The deal realised a 6.3 per cent yield.

Mr Morrison said CBRE offered the property to 10 groups and they received five offers from syndicators and one private family.

"The sentiment around the Sunshine Coast at the moment is really strong," he said.

"It's a brand-new building in a true mixed uses city centre."

Evans Long's director Dirk Long said they were pleased to have delivered Foundation Place, with the property attracting a range of ASX listed businesses.

"We are also excited to have created a quality of product that has attracted the endorsement of an owner of Primewest's calibre, testament to the Maroochydore City Centre's standing as the new Central Business District for the Sunshine Coast," he said.

Evans Long has started construction of its second building in the precinct A1 - a 2677sq m, three level, architecturally designed office and retail asset. It is due for completion next year.

Originally published as Primewest paid $31.187m for Foundation Place in Walker Corp’s Maroochydore city centre project