Consolidated Properties Group sells Spire Residences management rights for $9 million

Consolidated Properties Group has sold the management rights to its award-winning Spire Residences in the heart of the Brisbane CBD.

The deal included eight apartments.

The buyer was a private consortium of Queensland-based investors.

The $9 million off-market deal, which has just settled, included the caretaking rights to the building and its grounds over the next 23 years and a property management rental roll of more than 200 apartments.  

The consortium also secured another eight apartments, which will be added to the rental pool. 

In total, the 40-level Spire Residences, at 550 Queen Street, features 340 one and two bedroom apartments, along with on-site facilities including a roof-top infinity edge pool and entertainment deck, gym, cinema and library. 

The building was completed in September 2017 and was recognised with a suite of design and architecture awards last year, including the Residential Architecture - Multiple Housing accolade at the Queensland Architecture Awards.

Consolidated Properties Group Executive Chairman Don O'Rorke (pictured above) said the deal was evidence of the continued confidence in the inner Brisbane apartment market. 

"To secure this deal at $9 million is a strong show of faith in Spire Residences and the inner city market," he said. 

"The consortium saw the opportunity the building represented, as one of the few to be completed at the heart of the CBD in recent years, and acted quickly to purchase both the management rights and apartments.

"Spire Residences has been in high demand with renters, particularly young professionals wanting to live and work in the city - so much so that on completion we continued to receive more than 20 new enquiries a week, even after all the available apartments were tenanted."  

O'Rorke said the sale of the management rights would allow Consolidated Properties Group to put its full focus on its pipeline of new projects, including its multi-use urban renewal projects, Cornerstone Living in Sunnybank and Yeerongpilly Green. 

"We felt the time was right to sell this asset and have full confidence in the consortium of investors who have secured the management rights and who share our positivity in the Brisbane residential market," he said. 

Colin Gray, who is part of the private consortium of investors, said the decision to secure Spire Residences' management rights had been an easy one. 

“When the property came up, it took less than an hour to form the view it was a quality management rights business, with a strong return forecast," said Gray. 

"Purchasing the eight apartments for the rental pool is also a show of our confidence to other apartment owners and allows us to demonstrate that, along with the other owners, we too have 'skin in the game'.”   

HWL Ebsworth Lawyers, Pitcher Partners Accountants, Pevy Lawyers and Mike Phipps Finance assisted in the transaction, and Macquarie Bank provided funding for the deal.