Receivers move in on Springfield's 'Tower of Power'

Maha says it will be business as usual

The 10-storey tower at Springfield is up for sale with interest high in the iconic structure. Picture: Contributed

SPRINGFIELD'S 10-storey iconic office tower is in the hands of receivers after the owners ran into financial difficulties.

The iconic building known locally as 'Maha's Tower' is home to the Springfield Land Corporation, developer of the surrounding 28.6 sq km estate.

The 9459 sqm Springfield Tower is located on Sinnathamby Bvd overlooking Orion Springfield Central.

Receivers have stepped in to secure a sale with revelations 50 per cent of the building remains unleased following its construction in 2008. The building is owned by Stt Properties Pty Ltd, a Brisbane-based company.

Expressions of interest to acquire the property have been advertised nationally and close on September 22.

The building is being sold by agents JLL and national director Christian Sandstrom said it would appeal to a variety of potential buyers.

"We are seeking interest from value-added investors, so investors looking to buy the property and lease the space, as well as owner-occupiers and groups looking to do a partial conversion of the building to an alternate use," he said.

"We are also confident a number of government agencies would have interest in being in that location.

"The building was built eight years ago and it is fair to say that at the time the demand for office accommodation at Springfield wasn't as great as it is now.

"Now there is a lot more interest because the population has tripled in size...and there is a success story with a lot of the retail amenities, especially Orion shopping centre.

"It has some critical mass and the completion of the train station has been a significant game changer for businesses."

Mr Sandstrom said those with a lease in place would be entitled to stay on no matter who buys the building.

The Springfield development is the brainchild of Maha Sinnathamby who commenced the largest master-planned community in Australia in 1992.

The SLC chairman spoke to the QT from Singapore about the sale and said he was unfazed about the building changing hands.

As far as the future went, Mr Sinnathamby said his corporation was expanding, had a long-term lease and it would be business as usual.

"We have nothing to do with (the sale) as we are only a tenant," he said.

"We are happy there.

"In fact we are recruiting more staff and I am worried there will not be enough space requirements."

The building houses a diverse range of clients including the State Government, Channel Nine and Northrop Grumman.

Mr Sandstrom said the current 50% lease rate in the tower was not an issue for investors looking for long-term viability.

"I think the appropriate leasing strategy needs to be implemented to identify and target tenants," he said.

"It is an institutional-grade asset in an emerging precinct.

"Probably the downfall in the past has been that there hasn't been the critical mass to support businesses being there, but there is now.

"There are three more weeks on the campaign and we've had firm interest with numerous expressions of interest from groups that we believe will be bidding at the close of the campaign."

Greater Springfield Chamber of Commerce president Ralph Breaden said the forced sale would not adversely impact the local business community.

"It is obviously sad for the existing owners but the area will survive and thrive and a new owner will be found in due course," he said.

Originally published as Receivers move in on Springfield's 'Tower of Power'