Stanley Place

235 Stanley Street, Townsville

 Stanley One of the best office buildings in
Place burgeoning North Queensland

235 Stanley Street, Townsville 02

 87% leased to Stanley
Government tenants Place

235 Stanley Street, Townsville 03

The
Opportunity
Knight Frank is delighted Stanley Place will provide an incoming
purchaser the perfect platform to
to present for sale, leverage the expected outperformance

Stanley Place at 235 of North Queensland.

Stanley Street, Townsville. As one of only three prime assets in

the Townsville market and leased
A prime regional office at rents well below replacement
investment, underpinned cost to various federal government
departments, Stanley Place benefits
wholly by Government from exceptionally favourable market
covenants. fundamentals that augur well for future
tenant retention and growth prospects.

235 Stanley Street, Townsville 04

 Contents
Executive Summary 06

Investment Highlights 07

Location 08

Townsville 13

The Asset 18

The Process 26

235 Stanley Street, Townsville 05

 Executive Summary
100% 3.24yrs $497 / sqm*
Gross Average Passing Office Rent
Freehold Interest WALE on occupied area

87% 12,820 sqm Frontages

leased to Government tenants Net Lettable Area Two Street Frontages to Stanley
Street and Wills Street

2,033 sqm $4,534,245

Site Area Net Passing Income 5 Star
NABERS Energy rating

88 $5,335,930
Parking Spaces per annum* Estimated Fully Let Net Income Sales Process
A 100% freehold interest in Stanley
Place is offered for sale via Expressions

Principal 1,161 sqm*

of Interest, closing Thursday 28
September 2023 at 3pm (AEST).

Centre Typical Floor Plate

Zoning

*Approximate

235 Stanley Street, Townsville 06

Investment
Highlights
Secure leases underpinned by A future proofed building A tightly held market Strategic location Outstanding market
Federal Government tenants • High return providing $4,534,245 • Stanley Place, 445 Flinders and 420 • Prominently positioned on a highly fundamentals
• Occupied by Great Barrier Reef Marine per annum in net passing income and Flinders form the 3 prime office buildings exposed corner of Stanley and Wills • More than $8bn of new projects
Park Authority, Services Australia, NDIS $5,335,930 per annum* estimated fully let in Townsville. Street. committed within 200km of Townsville
and various other federal government net income. • The buildings encompass 33,000 sqm • Servicing Townsville Government office and in excess of a further $3.5 bn in final
backed tenants. • Strong ESG credentials underwriting of combined tenancy area, with average precinct including Townsville City Council stages of financial approval.
• 87% leased with majority of building Stanley Place’s ability to suit State and floor plates ranging from 881 sqm to 1,350 and State Government. • Extensive logistics network in the region
vacancy restricted to one level. Federal Government tenants. sqm. • Large freehold site of 2,033 sqm in close for rail, road, sea and air. The network
• Large floor plates at 1,161 sqm ideally • 5 Star NABERS Energy rating • The vacancy at Verde and Stanley Place, proximity to key transport and retail enables over $13.7 billion per annum of
suited to Government and listed Equate to 7% vacancy across Townsville amenities. goods and services exported domestically
• Future enhancement of ESG Criteria
corporation tenancies. prime office. and internationally.
through the implementation of green
• A strong history in attracting tenants to leases. • Considerable Government demand for • Strong GRP Growth of 13.3% led by
the building. prime grade office space within the last diverse mix of sectors in Manufacturing,
• Excellent tenant retention prospects
six months alongside renewed private Public Administration & Safety,
with limited competition at this grade of
sector demand. Construction and Mining.
accommodation and price point.

235 Stanley Street, Townsville 07

Location
 235 Stanley Street is situated in an absolute

Stanley
prime position within Townsville CBD, adjacent
to the Federal Court and Townsville City Council
chambers. Situated on one of the highest

Place
developed points in Townsville’s CBD, on the
corner of Stanley and Wills Street, the building
provides sweeping vistas over the city from all
levels to Magnetic Island and the ocean.

235 Stanley Street, Townsville 09

 TC E
ON
M E LT

T
S
235

IA
R
TO
IC
KING
ST

V
Stanley
S ST
ER
ND
FLI

Street FLINDERS STREET

B
ENTERTAINMENT PRECINCT

S
TO B

ST
K
ES B

LS
S
T

IL
SUNCORP PLAZA

W
ST
A TOWNSVILLE CITY COUNCIL
N
LE
Y B
ST B TELSTRA BUILDING, 7 TOMLINS STREET
FLINDERS STREET

T
S
T

T
ER S

R
M
PA L

TU

ST
B

EN
D
CITY LANE

G
QUEENSLAND HOUSING PALMER STREET

O
ENTERTAINMENT PRECINCT
T
CITY ARCADE IT H S
WOOLWORTHS TOWNSVILLE CITY RA
I LW
MC

T
S
ER
B
B

LK
B

A
W
250m
CASTLE HILL

SAU
VERDE, 445 FLINDERS STREET

ST
ON
ND
ERGON TOWER,

DS
ERS
B
420 FLINDERS STREET

VI
DA
Surrounded

ST
T
IT H S AL
IFF LE
GR N
ST
B

by Amenity B
500m
M
OR
EY
ST

T
SS
IN
RK
PE
Stanley Place is prominently located close to Townsville’s main
T
S
S

street and access way to the nearby Queensland Country Bank

ER
D

Stadium. The premium land holding has a generous dual street

IN
FL

frontage with direct exposure to Stanley Street and Wills Street

providing connectivity to Townville City bus stops and main TOWNSVILLE CENTRAL
transport nodes.

QUEENSLAND COUNTRY BANK

STADIUM (QCBS)
 Stanley MAGNETIC ISLAND

Place
JEZZINE BARRACKS

THE STRAND

TOWNSVILLE CITY COUNCIL HOLIDAY INN

FLINDERS STREET
ENTERTAINMENT PRECINCT
CITY ARCADE
CITY LANE
445 FLINDERS STREET
COWBOYS LEAGUES CLUB

PALMER STREET
420 FLINDERS STREET ENTERTAINMENT PRECINCT

CENTRAL QLD UNIVERSITY

TOWNSVILLE CENTRAL

QUEENSLAND COUNTRY BANK STADIUM

235 Stanley Street, Townsville 11

235 Stanley Street, Townsville 12
Townsville
Leverage North
Queensland’s
Growth
Investing in Stanley Place is an investment in North
Queensland. Townsville is Australia’s most economically
diverse regional city with a resident population of 200,000
and an economy that supports 132,000 jobs.
Australia’s Largest Defence Economy
The Federal Government has pledged to spend a further $48.6
billion in the 2022-23 fiscal year on defence, bringing its defence
A Competitive Economy budget to 2.11% of GDP, and representing a substantial 7.4%
growth, directly benefiting Townsville’s large defence footprint.

$19.8bn 14.09% 15% A recent addition is RAAF Base Townsville’s construction of

a new simulation training facility which will boost the city's
in Gross Regional Product of contribution to economic Townsville’s strong economy by $170 million through Defence works. It's welcome
(2022) + 13.3% growth output generated from economic diversity is growth to the local economy with a large portion of the projects
year on year the public administration underpinned by varied undertaken being delivered by local businesses.
sector bested only by the output, with no industry
manufacturing sector (14.65%) directly contributing to more
than 15% of the regions A Government Operations Hub
Gross Regional Product Townsville city is a major service centre, and the main centre for

2.3% $40.41bn government administration outside of Brisbane. Regional health

services are provided by the Townsville Hospital whilst there are
unemployment (3.8% QLD) in annual economic output a number of research institutions based in the city such as The
Australian Institute of Marine Science, the Great Barrier Reef
Marine Park Authority, Department of Agriculture, Fisheries and
Forestry and the CSIRO.

Sources: Australian Government, Townsville Enterprise, Remplan

235 Stanley Street, Townsville 14

 DR
E R
B LUEWAT ER AT
W
U

E
BL

City Shaping BE AC H H OLM

Infrastructure BUSH L A ND BEACH

235
Stanley
Street
Projects

M O U N T LO W P K WY
RK
YABU LU

10km

MO UNT LOW

BL AC K R I V E R
Some of the critical current projectsDEER AGUN
BURDEL L

MO UNT ST JO H N
impacting Townsville include:J E NS E N
1
2
INGHAM
RD

3 4
RDR

TOWNSVILLE
IVE

GA RBUTT
LY N AM
Mid-Tier Urban Sector Development
KR
AC

B
R
BL

• Ville Casino, 132 new residential units @$96m U

C
E P IMLICO
H
W
Y
• West End Hospital Development @ $60m MP
LE RD
Y
LR
DA

ABB
• New Great Barrier Reef Aquarium @ $70m 1 Ville Casino, 132 new residential units $96m
A ITKENVA L E

OT T
• New THHS 143 Bed Public Hospital @ $540m
2 Port of Townsville Channel Widening $251m

ST
IVER RD
KIRWA N ROSS R

SO
BO H L E PL A INS

UT
3 West End Hospital Development $60m

HERN PO
Industrial/Infrastructure R AN G E WOOD
ANNANDALE
CLUDE N 4 New Great Barrier Reef Aquarium $70m
• $70m QLD Resources Common User Facility, Stuart

RT RD
RD
RANGE H E RV E RY DO UGL AS U N IV ER S I T Y R D
5 New THHS 143 Bed Public Hospital $540m
• $70m Hydrogen Hub, Townsville 6
5
• $251m Port of Townsville Channel Widening CO NDO N WULGURU
6 Lavarack Barracks (as a co-ordinating base for $1.2bn
the Australian Singapore Initiative)

7 7 QLD Resources Common User Facility, Stuart $70m

Major Regional ST UART
• $5bn CuString development from late 2023 Other Planned Projects
• $770m Kidston Pumped Storage Hydro Project
RD

Hydrogen Hub, Townsville $70m

LE

• $1.2bn Australia Singapore Military Training Initiative

ER HWY
A
EV

ROS E NE AT H CuString development from late 2023 $5bn

IT
N
RA

IND
Kidston Pumped Storage Hydro Project $770m
G

Source: Townsville City Council

FL
235 Stanley Street, Townsville 15
Outstanding Market
Fundamentals
The Townsville office market is experiencing its strongest level of demand in several decades.
Expanding Public Sector requirements combined with new Private Sector demand for quality
accommodation for stakeholders in the Renewable and Resource sectors.

Townsville’s Prime Stanley Place Verde Ergon Building

Office Market

7%
Current
market
vacancy

Stanley Place is one of three

prime office assets within the
Townsville CBD, identified by
their ability to meet Federal
Government sustainability
requirements and underpinned by
strong market rents.
• 235 Stanley Street • 435 Flinders Street • 420 Flinders Street

• 12,820 sqm NLA • 11,500 sqm NLA • 7,972 sqm NLA

• 5 Star NABERS Energy Rating • 5.5 Star NABERS Energy Rating • 5 Star NABERS Energy Rating

• 1,161 sqm* floorplate • 1,375 sqm* floorplate • 881 sqm* floorplate

*Approximate

235 Stanley Street, Townsville 16

Since January 2023, 8,000 square metres of new Government
related demand has emerged over 4 requirements in the A
grade office market. In FY2023, separate major private sector
groups have expanded by more than 5,000 square metres
in the Townsville City Centre including KPMG, Knight Frank,
Premise Engineers, Selectability and Concentrix.

Townsville CBD - EST Vacancy Rate

2023 Prime and Total Market Vacancy

0% 5% 10% 15% 20% 25%

Prime Market Vacancy Townsville Market Vacancy

Source: Knight Frank Townsville

Excellent Tenant Retention Prospects

An impediment to further development of office accommodation
in regional cities is the cost of economic rent to enable viability
in new development. The most recent leasing proposals to
government tenants in regional Queensland for new buildings
(2,000sqm+) contain base rents exceeding $800 per square
metre (gross), in comparison with current rental ranges of $400 -
$500 per square metre (gross) within established premium assets.

(Knight Frank Townsville)

235 Stanley Street, Townsville 17

The Asset
Asset Overview

One of the largest Dominant Competitive Superb On-site Recent Refurbishment

buildings in Townsville Position Floorplate Size Amenities Program
Prime office with an NLA of Highly visible corner location on the Large 1,161 sqm* mid core floorplates Disabled access and ambulant Stanley Place has seen extensive
12,820 sqm. Townsville CBD’s main street, with an well suited to Government occupiers. amenities, basement storage, and refurbishments to the lifts and lobby
elevated site providing views across recently upgraded end-of-trip in the building.
the CBD and Magnetic Island. facilities.

State of the Built for the Extensive Connected to

Art Systems Tenant Car parking Transport and Amenity
The building features 900kw diesel- Purpose built to exacting 88 secure undercover car parking 450 metres to main CBD bus
generator providing 100% back up Government standards, end of trip spaces providing a ratio of 1 space Interchange and a further 3 key stops
power, incorporating both Sigma and facilities including bicycle storage per 146 sqm of NLA. within 100m.
Structure ware BMS with a security adding to tenant amenity. Five lifts
proximity card system. for quick access with two providing
basement access.

*Approximate

235 Stanley Street, Townsville 19

Flexible Floor Plates
Full Floor - Level 10 Split Floor - Level 4*
Excellent natural
light, enhanced by
large windows and
horizontal shading.
Lease
Large floor plates of 4B
388 sqm
Wills Street

Wills Street
1,161 sqm* that provide
flexibility for incoming Lifts, Stairs and Toilets Lifts, Stairs and Toilets

tenants space
requirements.
Lease
1,161 sqm 4C
729 sqm

Stanley Street Stanley Street

*As per current floor survey. Floor plan subject to change post formalization of lease documents and floor survey.

*Approximate

235 Stanley Street, Townsville 20

235 Stanley Street, Townsville 21
Superior
Sustainability
Stanley Place is positioned to meet investors
ongoing sustainability requirements, which is
increasingly imperative for a portfolio in the ESG era.

With the majority of the building being government tenants there is strong future
upside in increasing the sustainability credentials of the asset, as new Commonwealth
Tenants continue to implement ESG criteria within their new lease agreements.

Bicycle Facilities
5.0 Star 3.5 Star There are 2 areas for bike storage, as well
as ample surrounding public transport
NABERS NABERS amenities. Encouraging tenants to
Energy Rating Water Rating commute to work in an efficient manner.

EV Charging Options Floor to Floor

As the building improves to meet the
sustainability mandates of its Commonwealth
Airconditioning
Occupiers, GBRMPA has commissioned EV Each floors individual temperatures and AHU’s
charging spaces to be installed, setting a can be monitored and controlled remotely,
standard for surrounding tenants. providing sustainable use of the facilities.

235 Stanley Street, Townsville 22

Top Rated
Tenants
Tenant Composition by Gross Passing Income
Built to exacting standards to accomodate the Federal
Government and with significant CAPEX undertaken in Commonwealth of Australia (Services Australia) 47.8%

recent years, Stanley Place offers exceptional building Great Barrier Reef Marine Park Authority 24.7%
fundamentals for Private Sector and Government occupiers.
National Disability Insurance Agency (NDIA) 15.3%

National Indigenous Australians Agency 4.1%

Primary Tenant Overview Other 8.1%

Tenant Composition by NLA

Start Date 20 August 2023 Start Date 1 March 2020 Start Date 1 December 2016 Commonwealth of Australia (Services Australia) 42.6%

Expiry Date 19 August 2026 Expiry Date 31 August 2026 Expiry Date 30 November 2026
Great Barrier Reef Marine Park Authority 23.6%

Gross Passing $478/sqm Gross Passing $514/sqm Gross Passing $513/sqm

National Disability Insurance Agency (NDIA) 13.3%
Rental Rental Rental

Options 1 x 2 years Options Nil Options Nil National Indigenous Australians Agency 3.8%

NLA 3,021 sqm* NLA 5,460 sqm* NLA 1,706 sqm* Vacant 13.0%

Rent Reviews 3.5% Rent Reviews 3.25% Rent Reviews 3.5% Other 3.8%

*Approximate

235 Stanley Street, Townsville 23

Stacking Plan
NLA

13 13A Great Barrier Reef Marine Park Authority 699

12 12A Great Barrier Reef Marine Park Authority 1161

11 11A Great Barrier Reef Marine Park Authority 1161

10 10 Vacant 1161

9 9A Commonwealth of Australia (Services Australia) 1161

8 8A Commonwealth of Australia (Services Australia) 1161

7 7A Commonwealth of Australia (Services Australia) 1161

6 6A Commonwealth of Australia (Services Australia) 1161

5 5A National Disability Insurance Agency (NDIA) 1161

4C National Indigenous Australians Agency 481

4
4B Sunwater Limited 444

4A Vacant 192

3F Vacant 315
3
3E Commonwealth of Australia (Services Australia) 816

2 Car Parking

1 Car Parking

AG National Disability Insurance Agency (NDIA) 393

G DG National Disability Insurance Agency (NDIA) 152

G3 Gugu Badhun 40

As at 1 September 2023

235 Stanley Street, Townsville 24

Financial
Summary
Rental Income
87%
Office Tenants 5,397,681
leased to Government tenants

Car Parking 151,383

Other

Outgoings Recoveries
48,256

202,028
Landmark
CBD building, purpose built to
Total Rental Income 5,799,348 exacting government standards

Electricity Profit 116,712

7% Vacancy
AHAC 54,600
across CBD prime office market providing
Gross Rental Income 5,970,660 significant tenant retention prospects

Less: Outgoings 1,436,415

8% + returns
Net Passing Income 4,534,245
on prime regional office with strong
future capital growth potential
Estimated Vacant Income 801,685

Estimated Fully Let Net Income 5,333,930

*Approximate
All figures as at 1 September 2023

235 Stanley Street, Townsville 25

The
Process
The Process
Sales
Process
Stanley Place is available for purchase via
Expressions of Interest closing Thursday 28
September 2023 at 3pm (AEST). Exclusive Agents
Jonathan Vaughan
Jonathan.Vaughan@au.knightfrank.com
Expressions of Interest to purchase Electronic Data Room +61 423 681 854
the property should be lodged to the
An Electronic Data Room (EDR) has
appointed selling agents and address
been established to facilitate the Graeme Russell
the following key terms at a minimum:
provision of due diligence information. Graeme.Russell@au.knightfrank.com
• Name and details of proposed Please contact the appointed selling
agents to arrange access to the EDR. +61 419 320 000
purchasing entity;
• Purchase price in AUD; Justin Bond
Inspections
• Details of capacity to complete the Justin.Bond@au.knightfrank.com
Please contact Knight Frank in advance
transaction including any requirement
for the nominated inspection plan. +61 410 485 636
to raise debt and/or equity;
• Details of any conditions or approvals Craig Stack
required including Investment
Craig.Stack@au.knightfrank.com
Committee and/or FIRB;
+61 438 716 006
• Timetable for due diligence, execution
of contract and settlement; and
Due Diligence Enquiries:
• Contact details.
Clem Stack
Clem.Stack@au.knightfrank.com
+61 438 916 222

235 Stanley Street, Townsville 27