NICOL ROBINSON HALLETTS acted for ING Real Estate Health Care Fund, which has agreed to pay $63.5 million as part of developing a blood processing and distribution centre at the Queensland University of Technology.
To be built on the university’s Creative Industries Precinct at Kelvin Grove, the firm said the deal was in effect a public private partnership between ING, QUT and the Australian Red Cross.
“Rather than ING simply acquiring the land, and putting the building on it and leasing it out to the relevant authorities, QUT have taken an 80-year ground lease, so that at the end of the term, the land reverts back to QUT,” said lead partner on the deal Daniel Lilley.
“Obviously when you are dealing with different leasehold tenders like that, it tends to make things more complicated just simply because ING as a developer is effectively a tenant of QUT, and a lot of the development obligations are also governed by the ground lease.”
Property law specialists Lilley and Peter Townley did much of the work on the deal. This included negotiating an 80-year ground lease of the site, development agreements for the construction of the facility, lease of 40 per cent of the building to the Red Cross, a lease back to QUT of 40 per cent of the floor space and the financing of the acquisition.