Watpac Limited has sold its Optus Centre building to capitalise on strong investor demand for commercial office space and to provide immediate financial returns to shareholders.

Located at 312 Brunswick Street, Fortitude Valley, the property was acquired in October 2005 in a joint partnership with POD Developments for $12 million, and was sold for $18.5 million.

The building has 3000 sqm of office and retail space, with Optus as the major tenant.

Watpac’s managing director, Greg Kempton, said the decision to sell the property was in line with the company’s strategy to capitalise on the burgeoning commercial office market in south-east Queensland.

"In light of current market conditions, our feasibility studies and assessments regarding onselling this property revealed outcomes which were as lucrative as developing it, however, with fewer risks - making this a financially prudent move for our shareholders," said Mr Kempton.

"Recent market conditions indicate a high demand for commercial office space and strong investor demand which is underpinned by the knowledge that properties such as the Optus Centre hold lucrative potential for the future".

Research released by Jones Lang LaSalle in November 2006 reveals record low vacancy rates for office space in Brisbane which have resulted in an increase in rental growth due to the lack of supply.

Mr Kempton said that market conditions and investor interest were all conducive to Watpac’s plans to provide immediate financial returns to shareholders.

Geoff McIntyre and Sebastian Turnbull of Jones Lang LaSalle negotiated the sale of the Optus Centre.