During 2006, we were active in the Brisbane non-CBD commercial market, constructing two buildings. Importantly, our investments were in the construction and pre-leasing phase, so that we were very close to the market.

Accordingly, we were able to quickly assess the potential of an office building site in South Brisbane, owned by an investment partner. Located in a redeveloping area, we considered that a well designed building with medium-large floor plate would be well received by the tenant market.

Furthermore, the opportunity appealed to us for the following reasons:

• We were able to offer to the market a new building at rents below those being offered by competitors for non-CBD sites.
• We structured the acquisition subject to receiving development approval, so that we were able to market the property as ready to start giving us a strong appeal to the pre-lease tenancy market.
• We had a proven delivery team assembled with fresh experience in very similar assets.

Following settlement of the property, the joint venture of State Development Corporation and the Ray White Invest Boundary Street Property Trust applied for development approval to increase the gross lettable area of the building from 5,430sqm to 8,558sqm.

During this time, we negotiated an anchor tenant who pre-committed to the property. With this pre-commitment in place, we were able to commence construction of the building.

The builder, Ray White Constructions, completed construction during the second quarter of 2008. We have managed to lease approximately 92.9% of the building.  The building is now being actively managed post completion of construction.