Virgin Blue to buy Commercial Development in Brisbane for A$61 million

International developer Sunland Group has confirmed the presale of a commercial development at Bowen Hills in Brisbane to Virgin Blue Limited for A$61 million.

The campus-style development, which features a net lettable area of approximately 12,400 square metres, will become the new national headquarters for the Queensland-based airline group.

Virgin Blue has exclusive naming rights to the development, which is currently under construction and scheduled for completion in March 2008, with a further customised fit-out to be completed by August 2008. Virgin Blue will relocate from its current offices at 131 Barry Parade in Fortitude Valley.

 Sunland Managing Director, Sahba Abedian, said the Bowen Hills complex is the first commercial project ever undertaken by Sunland in Brisbane, which has a successful history of developing premium, high-profile residential projects, including Q1 on the Gold Coast.

"This development follows a number of innovative and highly successful mixed-use projects in south-east Queensland, including Aria in Broadbeach, Grand Hotel in Southport and most recently Circle on Cavill, which delivered 12,500 square metres in office and retail space to Surfers Paradise," Mr Abedian said.

The 9,302 sq m site was acquired by Preston Grove Pty Ltd, a subsidiary of Sunland Constructions, in late 2005 for A$8 million.

The presale to Virgin Blue was finalised on behalf of Sunland by Jonathan O’Brien, Managing Director of CB Richard Ellis Brisbane CBD, while Angus Harvey Ross of Corporate Property acted for Virgin Blue.

Virgin Blue CEO, Brett Godfrey, said the purchase of the high quality office building on the fringe of the Brisbane CBD would provide numerous benefits to the airline.

"Since Virgin Blue was established in Brisbane in 1999 our operations and team have increased significantly. Needless to say we have more than outgrown our current premises," Mr Godfrey said.

"This is a significant investment in providing our people with a contemporary working environment, which reflects our brand and future direction." 

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