Ex-Michael Hill headquarters at Murarrie sold in off-market deal

7 October 2022

A vacant commercial property in Brisbane’s east will be repositioned and re- leased following its sale to Alceon for $13.65 million.

The freestanding building at 7 Smallwood Place in Murarrie, within the heart of the Metroplex on Gateway estate, has a net lettable area of 3,277sq m over two levels consisting of predominantly office accommodation. It occupies a 5,812sq m prominent corner site, and has 106 car parks.

Seller OzProp Capital was looking to recycle the capital out of this asset with the sitting tenant Michael Hill Jeweller relocating to their new purpose-built premises at Cannon Hill, presenting an opportunity for a buyer to reposition the asset and offer it back to the market for lease.

The deal was negotiated by Matt Barker and Blake Goddard of Knight Frank.

Mr Barker said Alceon intend to reposition and refurbish the vacant asset, which has floor plates of 1,108sq m and 2,169sq m, before undertaking a strategic re-leasing campaign

“There is a lack of vacant buildings in the fringe market of this size, particularly with such a high car parking ratio,” he said.

“The refurbished space is expected to become available for lease immediately and will be suitable for occupiers from early 2023 looking for a commercial headquarters, project space, technology and laboratory space, research and development or a government office.”

Mr Goddard said the Murarrie property was centrally located within the Metroplex on Gateway estate and surrounded by a range of amenities and public transport hubs, with convenient access to the Gateway Motorway, Airport and CBD.

“The suburban office market has gone from strength to strength, particularly during the COVID recovery period where occupiers are seeking premises closer to suburban hubs,” he said

“7 Smallwood place creates a great opportunity for tenants to occupy a newly refurbished and modernised facility and should be highly contested with ongoing tenant demand within these precincts.”

Alceon Executive Director Justin Reidy said: “We have been looking for quality assets in the Murarrie area for a while and this one appealed to us as for a variety of reasons.

“It is unique, well positioned with excellent access, structurally sound and can accommodate a multitude of uses including commercial, light industry, medical, R&D and tech space.

“There are limited vacancies in the Metroplex Park and enquiry has been very strong pre and post the acquisition.

“Refurbishment works are set to commence in October which will include a full make good and new amenities.”