NQX sells for close to $18m

8 January 2003

Port of Brisbane Corporation Chief Executive Officer, Jeff Coleman, announced today that the Corporation had sold the NQX Distribution Centre at Eagle Farm, to Cromwell Corporation Limited. The sale of this building enables the continued facilitation of growth. The Port of Brisbane is the third largest and fastest growing capital-city port in Australia, and this will help the Corporation to continue to provide the infrastructure and facilities needed by port users, particularly at Fisherman Islands.

“The Corporation has taken the view that the capital from fully developed properties such as the NQX facility could now be more effectively utilised in building the port - one of Queensland’s major trade and income generators.

“Whilst this in no way indicates that the Corporation will undertake any sell off of port property, the Corporation will in future give consideration to the sale of specific, fully developed properties, where tenants are secure in tenure and positioned to benefit from their location to port facilities, and where long term control through ownership is not essential to the Corporation. This will not apply to any property at Fisherman Islands and no other properties are available for sale at this time”, he said.

NQX is a wholly owned subsidiary of Toll Holdings Limited, one of Australia’s major and fastest growing companies. It is a market leader in transport and logistics, and recently formed a joint venture with Patrick Limited to acquire National Rail Corp.

It decided to relocate to the Corporation’s Eagle Farm estate less than two years ago, due to its prime location near the Gateway Motorway, giving it easy access to the whole of South East Queensland and beyond.

The property comprises a high quality warehouse and distribution centre, office accommodation, separate truck maintenance building, truck wash, and hardstand for heavy vehicles over the balance of the site. Total building area is just under 19,000 square metres and site area, 6.3 hectares. Site coverage is approximately 30% and further expansion is available if required by the tenant.

“The building has been constructed to the highest quality with expansion potential. The tenant has chosen Brisbane’s prime location for this type of facility, and a long-term lease is in place to one of the nation’s leading public companies. Properties like this are keenly sought after and we anticipate strong interest from the Australian investment community,” said Cromwell Managing Director, Ross Stiles.

“The purchase of the NQX complex, Cromwell’s first industrial asset, reflects the company’s commitment to the acquisition of high quality properties with long term leases to quality tenants”. The NQX complex meets Cromwell’s stringent criteria, and will be included in a diversified property trust to be formed in the near future. Cromwell is currently negotiating the purchase of an additional high grade CBD commercial property to be included with the NQX complex as initial assets of its diversified trust”, he advised.

The building has been sold by Neville Jensen, Senior Managing Director of CB Richard Ellis Queensland. The price was $17.825 million, reflecting a yield of 8.26%.