Attribution

Content from this annual report should be attributed as: City of Brisbane Investment Corporation Annual Report 2021-22

Enquiries

Email: info@cbic.com.au
Telephone: 07 3252 1541
Post: GPO Box 2443, BRISBANE  Qld  4001
In person: Level 34, 345 Queen Street, BRISBANE  Qld  4000

More information about CBIC and its activities and services is available on our website at cbic.com.au.

About this report

This report summarises the activities and performance of the City of Brisbane Investment Corporation (CBIC) for the period 2021-22. The report details CBIC’s activities and performance against its purpose and objectives as set out by Brisbane City Council, the CBIC Board, CBIC’s strategic plan and its previous annual reports.

The report demonstrates CBIC’s commitment to delivering efficient and sustainable investments for the people of Brisbane.

The annual report is accompanied by financial statements. CBIC prepares annual financial statements in accordance with Australian Accounting Standards for auditing by the Queensland Auditor-General in accordance with the Auditor-General Act 2009.

This is CBIC’s fourteenth annual report since its establishment. Previous annual reports are available on our website at https://cbic.com.au/news-media/annual-report-downloads/.

Acknowledgement of Country

CBIC acknowledges the traditional custodians of the land and their unique relationship with their ancestral country. We pay respect to all Aboriginal and Torres Strait Islander peoples of Brisbane and all of the regions in which we work and recognise their strength and wisdom.

Table of Contents

About Us

Achievements and Highlights 2021-22

Lord Mayor’s Foreword

Chair & CEO Report

Our Performance

Property Portfolio

Sustainability Initiatives

Governance

Board Committees

Case Studies

Financials

About Us

Our role

City of Brisbane Investment Corporation (CBIC) is a high-performing Urban Wealth Fund. Purpose-driven and backed by strong commercial acumen, we are firmly invested in securing our city’s future. Since being established in 2008, CBIC has consistently delivered on its core purpose to provide strong financial returns to build a better Brisbane.

CBIC is wholly owned by Brisbane City Council (BCC) and overseen by an experienced Board. The day-to-day management of CBIC’s property portfolio is managed in-house by a team of experienced real estate professionals who provide asset management, development management, and capital transaction services.

The investment growth achieved by CBIC helps to fund the city’s future needs with a focus on parks and green spaces, but also supports other community assets and facilities, helps establish local supply chains and creates local jobs to make Brisbane greener, cleaner and better.

CBIC’s functions are guided by responsible investment strategies grounded in environmental, social and governance (ESG) principles. 

CBIC’s functions are guided by responsible investment strategies grounded in environmental, social and governance (ESG) principles.

Getting things done
Working
together
Responsive customer service
Passion
for Brisbane

Our values

We live up to our values by being adaptive to our shareholder and customer’s needs, being open and transparent in our communication and delivering beneficial social, economic and community outcomes for Brisbane.

Our purpose and objective

CBIC’s purpose is to build a better Brisbane by managing a high performing, quality Urban Wealth Fund that maximises the value of BCC’s property portfolio and ensures that land is developed to its highest and best use. The delivery of CBIC’s dividend contributes towards future environmental and social policy initiatives.

To show this purpose has been met, CBIC has set the ambitious objective of growing our asset base to $800 million plus in diversified property by financial year ending 2023.

AboutUs01
AboutUs02

Achievements and Highlights 2021-22

Building on its strong economic, environmental, social and governance record, CBIC has again achieved a series of positive outcomes for Brisbane in 2021-22.

In 2021-22, CBIC delivered an overall return of 13.8 per cent, exceeding its targeted return by an impressive 6.1 per cent. A key driver of this overall return and outperformance was the net valuation uplift of $27.62 million delivered for 2021-22.

CBIC’s property portfolio generated a return of 14.1 per cent for 2021-22. From an industry peer perspective, this return outperformed the MSCI/Mercer Australia Core Wholesale Index (pre-fees) benchmark return of 12.3 per cent. CBIC’s investment performance track record over the last 14 years since inception has delivered a return of 11.9 per cent per annum.

In 2021-22, CBIC delivered an overall return of 13.8 per cent, exceeding its targeted return by an impressive 6.1 per cent.

%

16.7 per cent valuation uplift

in CBIC’s Queensland property portfolio as at 30 June 2022.

%

14.1 per cent property / portfolio return vs benchmark

outperforming June 2022 MSCI/Mercer Australia Core Wholesale Fund Index (pre fees) by 1.8 per cent as at 30 June 2022. 

%

13.8 per cent overall return vs benchmark

6.1 per cent greater than the benchmark target of 7.7% as at 30 June 2022.

Expanding and diversifying our investment portfolio

CBIC has added to its interstate portfolio with the acquisition of a new CBD asset in Canberra with a diversity of corporate and government clients.

Active property management to limit rental arrears and renew leases

Less than 5% of monthly billings in arrears at 30 days across the portfolio and no lease expiries across the portfolio in 2021-22. Future lease expiries were proactively managed with CBIC securing lease renewals for 2022-23 onwards with key tenants, Macquarie Bank.

NABERS rating consolidation

available National Australian Built Environment Rating System (NABERS) energy and water ratings for the property portfolio shows a rating of 4.6 (energy) and 4.1 (water).

What is the benchmark?

CBIC is expected to achieve a rate of return over the long-term (seven years) of the consumer price index (CPI) plus 3.5 to 4.5 per cent with CPI being set as rolling CPI (Brisbane average over the last three years). In 2021-22, CBIC’s benchmark target was 7.7 per cent.

CBIC’s individual asset class portfolio performance is measured against the following benchmark indices:

Asset Class
Cash Investments
Domestic Bonds
Domestic Properties
Benchmark Index
Bloomberg AusBond Bank Bill Index over a rolling 1-year period
Bloomberg AusBond Composite Index
MSCI/Mercer Core Wholesale Index (pre fees)

Lord Mayor’s Foreword

As Chair of the Finance Committee in 2008 I was proud to sponsor the establishment of CBIC as an independently managed Urban Wealth Fund and wholly owned subsidiary of Council.

Established using Council’s investment in Brisbane Airport Corporation Holdings Limited and the $123 million Council received from the sale of its water infrastructure assets to the newly formed Queensland Urban Utilities group, CBIC has grown this seed capital to now having net assets of $339 million while also paying a total of $181 million in annual dividends to Council over its 14 years of operation.

Dividends from CBIC are invested in our Green Future Fund, going towards upgrades to suburban parks like Grinstead Park in Alderley and Shand Street Park in Stafford as well as Brisbane’s newest iconic green space at Victoria Park.

In just under 10 years’ time Victoria Park will be one of the new event venues as our city welcomes thousands of athletes from around the world to compete in the XXXV Summer Olympics and then the XIX Summer Paralympics. The athletes will be followed by many thousands more visitors and spectators. The Olympics and Paralympics present Brisbane with the opportunity to showcase our unrivalled lifestyle and natural environment.

There are more than 2,100 parks and green spaces in Brisbane where residents and visitors alike can enjoy entertainment, exercise, and culture. These parks and green spaces will form a unique experience for athletes, visitors and residents in the lead up to, during, and after the Olympics and Paralympics and is one reason why council is investing over $100 million in our parks network.

While the announcement that Brisbane will host both the Olympics and Paralympics in 2032 was a highlight for our city, there have been challenges that we as a community have had to overcome. The 2022 floods alone damaged 863 parks, 292 playgrounds, 198 community-leased facilities, 106 sports fields, bikeways and pools across Brisbane.

Council will rebuild these assets over time, but we must not neglect our commitments when it comes to new public assets and that is where CBIC is an invaluable partner for council. The work of the CBIC has never been more important so that we can continue to build a clean, green future Brisbane while also repairing damage from natural disasters.

I extend my thanks and appreciation to the CBIC Board, management, and staff for all their effort these past 12 months. They provide a dedicated service to the people of Brisbane that contributes to our city in times of triumph and adversity.

The Right Honourable, The Lord Mayor of Brisbane
Adrian Schrinner

The Right Honourable, The Lord Mayor of Brisbane
Adrian Schrinner

Building a better Brisbane by helping to fund BCC’s $100m+ programme for the creation and upgrade of parks and green space across the city.

Chair and Chief Executive Officer’s Report

Colin Jensen
Acting Chair

Kirsty Rourke
CEO

In 2021-22, CBIC generated a total profit of $43.18 million returning a dividend of $15 million to BCC to build a better Brisbane by helping to fund BCC’s $100m plus programme for the creation and upgrade of parks and green space across the city.

CBIC’s financial position is attributable to the direction and leadership of the CBIC Board overseen by former Chair Geoff Rodgers. CBIC thanks Geoff for his contribution as Chair from 2019 to 2022 during uncertain times.

The 2021-2022 financial year has seen CBIC commit to adopt and implement the United Nations' Principles for Responsible Investment and embed the principles of ESG into our business.

Guided by its ESG-informed investment strategy and by undertaking disciplined property and asset management, CBIC saw a net $27.62 million property valuation uplift for the overall portfolio in 2021-22. Major gains were made in the office and industrial sectors generating an overall return of 13.82 per cent for the year. CBIC added to our commercial office holdings in 2021-22 with the successful acquisition of property at 33 Allara Street, Canberra for $71.25 million.

Despite the unpredictability of the past three years, CBIC once again delivered double digit returns to BCC. As we approach our 15th year, economic challenges in Australia mount with rising interest rates that will impact on property values in all markets.

Expansion and diversification of CBIC’s property portfolio has been a strategic priority for CBIC. It will remain so in 2023 as we explore new interstate markets and asset classes for investment that meet the requirements of our charter and respond to the changes in the market and the increasing cost of senior debt for all market participants.

While our portfolio is growing nationally, CBIC is the Urban Wealth Fund for Brisbane and we steadfastly support BCC’s vision for Brisbane. With the knowledge gained over the last 14 years, our imbedded investment principles, and our in-house expertise, CBIC is well prepared to continue to invest in and for the Brisbane community and contribute toward the city-defining 2032 Olympics and Paralympics.

Colin Jensen
Acting Chair

Kirsty Rourke
CEO

Our Board

Colin Jensen

Acting Chair

Managing an annual budget of $3.986 billion and an asset base of $34.021 billion, Colin Jensen is Chief Executive Officer of BCC, serving a population of over 1.2 million people.

Colin oversees the largest local government in Australia, and delivers BCC’s key initiatives in the pursuit of its Brisbane Vision 2031.

BCC is delivering congestion-busting road projects, Australia’s most modern public transport system including the Brisbane Metro, as well as transforming Brisbane’s Victoria Park into a world-class public parkland – all projects aimed at creating a strong economy and more local jobs.

In this role, Colin leads BCC’s delivery of responsibilities as Host City for the Brisbane 2032 Olympic and Paralympic Games – the world’s largest sporting event. Brisbane will be the home of 56 per cent of the sporting venues for the Games and will host the key non-competition venues of the International Broadcast Centre, the Olympic and Paralympic Villages, and the Media and Press Centre. BCC will provide key services to the Games including transport and other city services.

As Chief Executive Officer, Colin is committed to ensuring Brisbane is and always will be a great place to live, work and relax, empowering this commitment by championing and modelling clear organisational values across BCC.

Prior to joining BCC in August 2010, Colin had a successful career in the Queensland Government, most recently as the Coordinator-General and Director-General of the Department of Infrastructure and Planning. As the key infrastructure program manager, he presided over a capital program of $18.2 billion – a record for any Australian government.

Colin received the QUT Chancellor’s Outstanding Alumni Award, and the Faculty of Built Environment and Engineering Outstanding Alumni Award for 2011.

Colin was awarded the Queensland 2010-11 National Emergency Medal for sustained service by the Governor-General for the role he played in the January 2011 floods.

He holds a Bachelor of Civil Engineering (Honours) and is a fellow of the Australian Academy of Technological Sciences and Engineering (ATSE), joining the country’s leading names in technological science and engineering. Colin is also an honorary Fellow of Engineers Australia.

Neil Castles

Director

Neil is a consultant to local government, specialising in finance, debt management, credit and risk management.

Previously, Neil was the Director-General of both the Department of Housing and Public Works and the Department of Local Government.

Earlier in his career, Neil was a Senior Executive of the Queensland Treasury Corporation, the State of Queensland’s central financing authority for more than 20 years. He was also the Deputy Director-General Finance Procurement and Legal of Queensland Health. Neil has been a Director and Company Secretary of several of the Queensland Government’s special purpose companies.

Neil’s areas of expertise include finance, debt management, credit, and risk management.

Bruce McIver AM

Director

Bruce is the Chairman of the McIver Group of Companies, Nimrod Resources Limited, Sozo Resources Pty Ltd and Palmer Leisure Pty Ltd. He has served on a number of boards with property holdings, both in Queensland and interstate.

Bruce is a Fellow of the Australian Institute of Company Directors.

Colin Jensen

Acting Chair

Managing an annual budget of $3.986 billion and an asset base of $34.021 billion, Colin Jensen is Chief Executive Officer of BCC, serving a population of over 1.2 million people.

Colin oversees the largest local government in Australia, and delivers BCC’s key initiatives in the pursuit of its Brisbane Vision 2031.

BCC is delivering congestion-busting road projects, Australia’s most modern public transport system including the Brisbane Metro, as well as transforming Brisbane’s Victoria Park into a world-class public parkland – all projects aimed at creating a strong economy and more local jobs.

In this role, Colin leads BCC’s delivery of responsibilities as Host City for the Brisbane 2032 Olympic and Paralympic Games – the world’s largest sporting event. Brisbane will be the home of 56 per cent of the sporting venues for the Games and will host the key non-competition venues of the International Broadcast Centre, the Olympic and Paralympic Villages, and the Media and Press Centre. BCC will provide key services to the Games including transport and other city services.

As Chief Executive Officer, Colin is committed to ensuring Brisbane is and always will be a great place to live, work and relax, empowering this commitment by championing and modelling clear organisational values across BCC.

Prior to joining BCC in August 2010, Colin had a successful career in the Queensland Government, most recently as the Coordinator-General and Director-General of the Department of Infrastructure and Planning. As the key infrastructure program manager, he presided over a capital program of $18.2 billion – a record for any Australian government.

Colin received the QUT Chancellor’s Outstanding Alumni Award, and the Faculty of Built Environment and Engineering Outstanding Alumni Award for 2011.

Colin was awarded the Queensland 2010-11 National Emergency Medal for sustained service by the Governor-General for the role he played in the January 2011 floods.

He holds a Bachelor of Civil Engineering (Honours) and is a fellow of the Australian Academy of Technological Sciences and Engineering (ATSE), joining the country’s leading names in technological science and engineering. Colin is also an honorary Fellow of Engineers Australia.

Neil Castles

Director

Neil is a consultant to local government, specialising in finance, debt management, credit and risk management.

Previously, Neil was the Director-General of both the Department of Housing and Public Works and the Department of Local Government.

Earlier in his career, Neil was a Senior Executive of the Queensland Treasury Corporation, the State of Queensland’s central financing authority for more than 20 years. He was also the Deputy Director-General Finance Procurement and Legal of Queensland Health. Neil has been a Director and Company Secretary of several of the Queensland Government’s special purpose companies.

Neil’s areas of expertise include finance, debt management, credit, and risk management.

Bruce McIver AM

Director

Bruce is the Chairman of the McIver Group of Companies, Nimrod Resources Limited, Sozo Resources Pty Ltd and Palmer Leisure Pty Ltd. He has served on a number of boards with property holdings, both in Queensland and interstate.

Bruce is a Fellow of the Australian Institute of Company Directors.

Maria Roach

Director

Maria has more than 20 years’ experience as a company secretary of publicly listed companies in Australia. Maria also provides consulting services in corporate governance. Maria has a Bachelor of Business (Accountancy), is a Fellow of the Chartered Secretaries Association, and is a Certified Practicing Accountant (CPA). She is a former member of the Australian Government Takeovers Panel.

Maria Roach

Director

Maria has more than 20 years’ experience as a company secretary of publicly listed companies in Australia. Maria also provides consulting services in corporate governance. Maria has a Bachelor of Business (Accountancy), is a Fellow of the Chartered Secretaries Association, and is a Certified Practicing Accountant (CPA). She is a former member of the Australian Government Takeovers Panel.

Patrice Sherrie

Director

Patrice has extensive experience with over three decades spent in chartered accounting and commerce starting with PWC in both Brisbane and Port Moresby. She went on to hold a CEO role for Paridian Property Development Fund and an Executive role with Grant Samuel Property. Patrice is a former Director and Consultant to Bentleys Chartered Accountants where she specialised in property transactions and now sits as an Independent Director on several boards including Acumentis Group Ltd, Millovate Pty Ltd, Brisbane Sustainability Agency Pty Ltd, and Andersens Floor Coverings Pty Ltd.

Anne Lenz

Alternate Director for Colin Jensen

Anne is Alternate Director to Colin Jensen. As BCC’s Divisional Manager for Organisational Services, Anne is responsible for leading, developing and managing BCC’s business functions to ensure appropriate financial management. She is also responsible for the effective delivery of information, as well as communications technology, asset optimisation, human resources, support services and centre-led procurement.

Prior to this appointment, Anne was the Branch Manager for Compliance and Regulatory Services (CARS) and Lifestyle and Community Services. In these roles, Anne was responsible for managing BCC’s regulatory response to matters across areas such as environmental health, built environment, animal management and natural environment.

Before joining BCC, Anne had 17 years of experience working in various roles at the Queensland Government, including Executive Director, Strategy Support and Compliance with the Department of Environment and Science. Some of her major achievements include implementing a new financial assurance framework for mines, developing an intelligence-led risk-based compliance model and managing the underground coal gasification trial.

Anne holds an Executive Master of Public Administration, Graduate Certificate in Public Sector Management, Graduate Diploma in Legal Practice, Skills and Ethics, as well as a Bachelor of Laws and Bachelor of Environmental Science.

Patrice Sherrie

Director

Patrice has extensive experience with over three decades spent in chartered accounting and commerce starting with PWC in both Brisbane and Port Moresby. She went on to hold a CEO role for Paridian Property Development Fund and an Executive role with Grant Samuel Property. Patrice is a former Director and Consultant to Bentleys Chartered Accountants where she specialised in property transactions and now sits as an Independent Director on several boards including Acumentis Group Ltd, Millovate Pty Ltd, Brisbane Sustainability Agency Pty Ltd, and Andersens Floor Coverings Pty Ltd.

Anne Lenz

Alternate Director for Colin Jensen

Anne is Alternate Director to Colin Jensen. As BCC’s Divisional Manager for Organisational Services, Anne is responsible for leading, developing and managing BCC’s business functions to ensure appropriate financial management. She is also responsible for the effective delivery of information, as well as communications technology, asset optimisation, human resources, support services and centre-led procurement.

Prior to this appointment, Anne was the Branch Manager for Compliance and Regulatory Services (CARS) and Lifestyle and Community Services. In these roles, Anne was responsible for managing BCC’s regulatory response to matters across areas such as environmental health, built environment, animal management and natural environment.

Before joining BCC, Anne had 17 years of experience working in various roles at the Queensland Government, including Executive Director, Strategy Support and Compliance with the Department of Environment and Science. Some of her major achievements include implementing a new financial assurance framework for mines, developing an intelligence-led risk-based compliance model and managing the underground coal gasification trial.

Anne holds an Executive Master of Public Administration, Graduate Certificate in Public Sector Management, Graduate Diploma in Legal Practice, Skills and Ethics, as well as a Bachelor of Laws and Bachelor of Environmental Science.

Our performance

CBIC’s performance during the 2021-22 financial year has seen improvements to the property portfolio’s valuation and returns, expansion and diversification of property and tenants, and NABERS rating upgrades.

This section explains the strategies that have helped CBIC achieve what we have in 2021-22 and profiles the property portfolio and our investments to better Brisbane.

Our strategies around development and investment are informed by our responsible investment principles.

The management of CBIC’s property portfolio is undertaken by in-house teams who have capabilities across investment management, asset management, development management and transaction management.

Responsible investing

As an Urban Wealth Fund committed to bettering Brisbane, our investment decisions are designed to benefit the community now and into the future.

During the 2021-22 financial year CBIC, guided by an expert ESG consultancy, finalised its gap analysis to best identify areas of strength and areas of focus in the short, medium and long term. The gap analysis informed the preparation of the ESG strategy to support responsible investment. The ESG strategy was approved by the CBIC Board with management implementing components of the strategy throughout the year.

The following initiatives and programs commenced or were completed by CBIC during 2021-22 as part of the strategy:

  • applied to be a signatory to and adopted the United Nations Principles for Responsible Investment (UNPRI)
  • secured planning approvals for Everton Park and East Brisbane for specialist disability accommodation and commenced the delivery of the Everton Park accommodation
  • commenced due diligence investigations into other sites for specialist disability accommodation
  • explored renewable energy projects to provide investment grade green power to the grid
  • invested in assets with strong ESG credentials that can be sustained and improved in the long term e.g. 33 Allara Street, Canberra
  • progressed investigation into solar panels across suitable properties
  • installed or commenced investigations into electric vehicle charging stations in suitable assets
  • responsibly engaged suppliers that comply with the Modern Slavery Act
  • engaged with key suppliers regarding indigenous participation and domestic and family violence support within their organisations
  • fostered a diverse management team – 73 per cent female representation across the group and 50 per cent executive representation
CBIC applied to be a signatory to and adopted the UN's Principles for Responsible Investment

CBIC’s ability to identify and establish a pipeline of development opportunities that provide quality ongoing returns has been one of the main reasons behind CBIC’s sustained growth since 2008.

CBIC is actively exploring development opportunities within Brisbane with a focus on industrial, commercial and mixed-use assets in the Southeast Queensland region.

Development strategy

CBIC’s ability to identify and establish a pipeline of development opportunities that provide quality ongoing returns has been one of the main reasons behind CBIC’s sustained growth since 2008. The development strategy interacts with CBIC’s investment strategy to align targeted assets and locations and provide a sustainable return to BCC.

CBIC is actively exploring development opportunities within Brisbane with a focus on industrial, commercial and mixed-use assets in the Southeast Queensland region.

Development opportunities for CBIC are identified through understanding surplus or underutilised BCC sites, on-market and off-market opportunities.

CBIC is also looking at other Queensland based opportunities outside of the Southeast Queensland region that align with the development and investment strategy to continue to build a strong pipeline of opportunities.

CBIC has identified ‘living sector’ property assets as a growth area to explore, particularly in specialist disability accommodation. During 2021-22, construction commenced on the first of CBIC’s specialist disability accommodation projects at Everton Park. A new living sector asset type CBIC is exploring as part of the development strategy is build-to-rent accommodation. Investment in the living sector aligns with our ESG commitment around inclusive infrastructure and greater housing choice by creating more inclusive accommodation for Brisbane residents.

Investment strategy

CBIC’s investment strategy prioritised stabilised assets with strong corporate and government tenants in our local Southeast Queensland region with supplementary assets in Victoria, New South Wales, and the Australian Capital Territory. These areas will continue to be the focus going forward, with CBIC also exploring investment opportunities in South Australia. 

The market fundamentals in South Australia are attractive due to growing economic demand with broad based growth from the public sector, consumption and business investment. As at 30 June 2022 Adelaide also had the highest office occupancy rates in the country.

Property Portfolio as at June 2022

Office

33 Allara Street, Canberra ACT

Allara Street Offices

Property Summary as at June 2022
Ownership
100%
Acquisition date​

2022

Site Area
3,725m2
Total area (NLA)

9,736m2

Occupancy

89%

WALE (income)

4.2 years

Tenant/s

Commonwealth Government, Infosys Technologies Ltd, JAGA Workspaces

33 Allara Street is positioned in the eastern core of the Canberra CBD, with extensive and commanding street appeal. The A-Grade building is constructed upon a site area of 3,725 sq.m., providing seven levels of office accommodation, together with ground level retail, combining for a net lettable area of 9,735 sq.m. Parking is available for 117 vehicles across two basement levels, which includes end-of-trip facilities for the building occupants. The property is occupied by a diverse group of tenants from a variety of industries, including Commonwealth Government (Murray Darling Basin Authority), as well as publicly listed and multi-national organisations.

The building has undergone significant refurbishment and service upgrade works over recent years, achieving a 4.5-star NABERS Energy Rating, ensuring CBIC continues to align its portfolio with environmentally sustainable assets. The defensive income stream is underpinned by Commonwealth Government, whilst the immediate location benefits from government and private investment that will continue to enhance this precinct over the medium to long term.

99 Georgiana Tce, Gosford NSW

Australian Taxation Office

Property Summary as at June 2022
Ownership
100%
Acquisition date​

2018

Site Area
4,250m2
Total area (NLA)

7,542m2

Occupancy

100%

WALE (income)

5.3 years

Tenant/s

Commonwealth Government of Australia (ATO)

Completed in 2017, Georgiana Terrace is a purpose-built facility, providing high quality office accommodation for the Australia Taxation Office and the National Disability Insurance Agency.

Achieving a NABERS energy rating of 5.5 stars, this asset will continue to underpin the portfolio with a long WALE, secure income stream and low capital expenditure.

9 George Street, Paramatta NSW

George Street Offices

Property Summary as at June 2022
Ownership
100%
Acquisition date​
2019
Site Area
1,4122
Total area (NLA)

5,5622

Occupancy

95%

WALE (income)

2.7 years

Tenant/s

NSW Government, Westpac Banking Corporation

Located within the Justice Precinct, 9 George Street has been repositioned to take advantage of the improving demand for office space in the Parramatta market. Upgrades to lighting and air-conditioning have been completed, reducing energy consumption and demonstrating CBIC’s commitment to environmentally responsible investment.

The recently completed refurbishment has seen high quality tenants committing to leases, despite the widely-felt impacts of COVID, which demonstrates the strong demand for quality space in Parramatta.

The New South Wales Government’s commitment to infrastructure investment in Parramatta and the Western Sydney region has established Parramatta as a viable alternative to the Sydney CBD, with the opportunity to provide increased occupancy ratios and capital growth.

375 Hamilton Rd, Chermside QLD

North Regional Business Centre

Property Summary as at June 2022
Ownership
100%
Acquisition date​

2015-2017

Site Area

5,010m2

Total area (NLA)

6,058m2

Occupancy

100%

WALE (income)

9.8 years

Tenant/s

Brisbane City Council

The North Regional Business Centre (NRBC) was developed by CBIC to hold long term, in line with its mandate to provide consistent look-through earnings for its shareholder. NRBC was built with sustainability in mind, with reduced energy demand and water efficient fixtures and fittings. The 5 star NABERS rating is effective until May 2023.

The asset is ideally located in proximity to Chermside Shopping Centre and provides ground floor community facilities including a public library and café, with high quality office accommodation on the upper floors. The asset was constructed to a high standard and will provide a long-term rental stream with a low capital expenditure requirement, maximising returns for the shareholder.

Industrial

7 Rivergate Place, Murarrie QLD

Lot 3 & 21,22 & 23 – Rivergate, Murarrie

Property Summary as at June 2022
Ownership
100%
Acquisition date​

2011

Site Area
15,910m2 (plus Body Corporate shared access)
Total area (NLA)

10,916m2

Occupancy

100%

WALE (income)

15.3 years

Tenant/s

Brisbane City Council, Rivergate Marina, Shipyards Pty Ltd.

Rivergate is situated in the established industrial precinct of Murarrie, benefitting from good transport connectivity to the Port of Brisbane, Brisbane Airport and Gateway Motorway.

CBIC’s holdings in the Rivergate Marina, Queensland’s premier commercial shipyard, continues to show solid investment returns whilst providing its tenants with premiere shipyard and marina facilities. Part of the marina is leased to Brisbane City Council, which use the facility to maintain and berth their CityCat and ferry fleets.

20 TradeCoast Dr, Eagle Farm QLD

TradeCoast Central

Property Summary as at June 2022
Ownership
100%
Project date​

2018 — 2019

Site Area

5.8ha

Total area (NLA)

12,888m2 (plus 2ha hardstand)

Occupancy

100%

WALE (income)

12 years

Tenant/s

Brisbane City Council

20 Tradecoast Drive, developed by CBIC and completed in July 2020, is a strong performer within CBIC’s portfolio. It provides significant exposure to the industrial market which has been the best performing real estate asset class over the past quarter. Leased to Brisbane City Council to provide operational efficiencies for the various business units of Council, this asset is a long-term core asset for CBIC.

Retail

145 Florence St, Wynnum QLD

Wynnum Shopping Centre

Property Summary as at June 2022
Ownership
100%
Acquisition date​

2015 — 2016

Site Area

6,145m2

Total area (NLA)

5,388m2

Occupancy

100%

WALE (income)

13.7 years

Tenant/s

Woolworths, Brisbane City Council

Located in the business district of the bayside suburb of Wynnum, 145 Florence Street continues to derive a steady and sustainable income stream from the two major tenants, Woolworths and Brisbane City Council.

The asset provides sector diversification to the portfolio as the leasing profile is underpinned by a full-line supermarket. Non-discretionary retail has performed strongly in 2020, and as a result CBIC has avoided the negative impacts felt by landlords with large allocations to discretionary retail.

145 Florence Street provides an improved retail offering to Wynnum and delivers strong social benefits, through the parkland adjacent to the development and the state of the art library facility.

Sustainability Initiatives

Optimising our assets through responsive management to deliver environmentally sustainable outcomes is one of CBIC’s ESG commitments.

CBIC has undertaken initiatives to meet this commitment including:

  • continuation of Carbon Neutral Certification of 99 Georgiana Terrace, Gosford tenanted by the Australian Tax Office
  • installation of solar panels at suitable properties
  • upgrade of building management systems for better control over services e.g. air conditioning and electricity
  • replacement of air conditioning systems in older buildings
  • installation of LED and sensor lighting

During 2021-22, CBIC welcomed Allara Street, Canberra to the portfolio and maintained its NABERS rating for energy and water across its property portfolio with strategies commenced to improve the rating in FY23.

Capital upgrades occurring throughout mid-2022 at 9 George Street, Parramatta will position the portfolio to increase the average NABERS ratings for both energy and water during the year.

2021

Property
Area sqm
%
Energy Rating
Water Rating
ATO
7,512.60
39.44%
5.5
5
Parramatta
5,479.41
27.76%
3.5
2.5
NRBC
6,058.00
31.80%
4.5
4.5
Portfolio
19,050.01
100%
4.6
4.1

2022

Property
Area sqm
%
Energy Rating
Water Rating
ATO
7,512.60
26.09%
5.5
5
Parramatta
5,479.40
19.03%
3.5
2.5
NRBC
6,058.00
21.04%
4.5
4.5
Allara
9,736.00
33.82%
4.5
N/A
Portfolio
28,786.00
100%
4.6
4.1

Looking forward

CBIC’s strategic plan plots out objectives and future growth opportunities through to 2032. In the interim, CBIC’s primary objective is to grow the asset base and double current investment in real estate.

As articulated in our investment strategy, our market review has identified investment opportunities in other markets across Australia with plans to add property in South Australia and maintain a focus on the Southeast Queensland region.

CBIC will also continue to explore renewable energy projects to provide green power to the community.

Reinvesting in Brisbane

Dividends from CBIC are invested in BCC’s Green Future Fund to create parks and green spaces for Brisbane.

CBIC funds go towards iconic parks like Victoria Park. BCC has completed master planning and detailed planning, and concept design for stage one.

New play equipment, pathways, and additional picnic facilities are now available in Grinstead Park.

Shand Street Park received a new bike skills loop and pathway with skate and scooter features.

Bradbury Park improvements include a large new play space, carpark and supporting recreational facilities.

Governance

CBIC is committed to effective corporate governance standards, operating our business to the highest ethical and principles-led standards and practices, aligning with the expectations of our Shareholder.

Our approach to corporate governance is based on a set of values and behaviours that underpin activities and decisions that are designed to promote transparency, fair dealing and the protection of the Shareholder’s interest, including our employees, customers and the communities we serve.

This section discusses the governance of CBIC including Board responsibilities and committees.

CBIC Board

The Board has continued to strengthen its governance foundations through continuous review of policies, monitoring risk, risk appetite parameters and compliance. To align with its ESG commitments, CBIC has introduced additional requirements in our tender and procurement practices to require that third parties evidence their environmental and social practices.

The Board formally reviews its performance on an annual basis and informally reviews its performance at the end of each meeting, covering the following areas:

  • strategy
  • monitoring
  • board structure and role
  • meeting processes
  • Board and Director responsibilities
  • Board culture and values

Performance evaluation is also carried out at committee level.

Board committees

CBIC has two Board committees to assist the Board to oversee and monitor operational controls of CBIC. Committee membership comprises of directors of the Board, with relevant and appropriate skills and expertise. Each committee has a formal charter and meets at a minimum three times a year.

Finance, Audit and Risk Committee

The Finance, Audit and Risk Committee’s (FAR) primary role is to assist and support the Board’s financial and performance management responsibilities, by providing oversight to:

  • the financial reporting processes
  • the systems of internal controls through an integrated risk and compliance management framework
  • the internal and external audit process.

FAR provides assurance to the Board and assists it to create a culture of accountability and integrity. FAR reviews the results of CBIC’s external audit of its financial statements and all matters required to be communicated to FAR by the Queensland Audit Office (QAO) under the professional auditing standards.

FAR also oversees the outsourced internal audit function of CBIC, which provides an independent, objective assurance to the Board that internal controls are operating effectively. The audit function achieves this through a systematic and disciplined approach to evaluating and improving risk management, compliance management and controls and governance processes, by following an internal audit plan, which is linked to our assurance map and reviewed annually.

People, Performance and Culture Committee

The People, Performance and Culture Committee’s (PPC) role is to support and advise the Board on fulfilling its statutory, corporate governance and oversight responsibilities in relation to people, performance management, remuneration structure and culture. PPC provides oversight to ensure:

  • people are appropriately rewarded having regard to CBIC’s performance, individual performance and statutory and regulatory requirements which reflect the company’s culture and values
  • appropriate performance management (ensuring succession planning) and development activities and programs are maintained
  • monitoring of culture through an annual staff engagement survey

Remuneration

Directors’ remuneration is determined by the Shareholder Representative Board of Brisbane City Council. Employees of BCC who are appointed as Directors of CBIC are not remunerated for their services.

Case Study

CBIC & Youngcare partnership

CBIC will develop a specialist disability accommodation project at Everton Park providing housing for young people in need.

Youngcare, Australia’s leading specialist disability care provider, has been selected as the services provider for Everton Park.

The Everton Park project will see the delivery of two share houses that will provide vital in-community housing for participants with high physical support needs. The two homes each have three bedrooms (with private ensuites) and a shared living, dining and kitchen space as well as an outdoor entertainment area, so residents can enjoy supported living with other people of similar age and interests.

A second CBIC developed specialist disability accommodation project is planned for East Brisbane with Youngcare to be the services provider once the project is complete.

Rork Projects, a nationally accredited Indigenous construction company, have been appointed as the construction contractor to deliver the specialist disability accommodation at Everton Park.

Currently, there are 28,000 young people with disabilities enrolled in the National Disability Insurance Scheme that are searching for an appropriate place to call their own home.

Young Australians are being left behind in aged care, hospital rooms, and rehabilitation centres; accommodation that is not well suited for their age or care needs.

The land at Everton Park was acquired by CBIC from BCC, the site being surplus to BCC’s requirements. Civil works to create the lots are due for completion in August 2022 with construction of the homes occurring in late 2022. Specialist disability accommodation aligns strongly with CBIC’s ESG informed development and investment strategies.

Rork Projects, a nationally accredited Indigenous construction company, have been appointed as the construction contractor to deliver the specialist disability accommodation at Everton Park.

Youngcare is very proud to have partnered with CBIC to develop two new homes at Everton Park and seven apartments in East Brisbane, providing purpose-built homes for 15 young Australians with severe physical disabilities. This support from CBIC has ensured that each home is designed specifically around the needs of the residents, providing them with choice, dignity and control.

CBIC’s commitment to responsible investing principles will deliver positive contributions to not only the residents and their families, but also the broader community.

Greg Johnson
CEO, Youngcare

Case Study

CBIC supports Regional Operations Centre: Delivering for Brisbane

A little-known BCC facility in Eagle Farm is making a big difference to Brisbane with support from CBIC.

A little-known BCC facility in Eagle Farm is making a big difference to Brisbane with support from CBIC. The Regional Operations Centre (ROC) manufactures, installs and repairs traffic lights for use right around Brisbane, and is at the forefront of the fight against mosquitoes.

The number of traffic lights made at ROC varies depending on demand but on any given year, three new signalised intersections are installed in Brisbane.

Signalised intersections range from shopping centre entrances requiring one or two lights to five-way intersections that require several traffic lights. A complete traffic light measures 1,060 millimetres high by 550 millimetres wide and weighs between 11-15 kilograms. Like any piece of technology, traffic lights need regular maintenance and repair. Approximately 1,800 traffic lights require repair each year.

Underscoring Brisbane’s green credentials, ROC recycle most materials that are used in the manufacturing of traffic signals. How materials are reused:

  • metal poles go to metal recycling.
  • electrical cables to copper recycling
  • plastic pits to plastic recycling
  • metal controller boxes to metal recycling.
  • when uninstalled (and replaced), the traffic lanterns are sent to the Endeavour Foundation to be dismantled and to maximise the recycling of materials.

The multi-disciplinary team at ROC also trap, collect, sort and identify mosquitoes. Where the instinct of most people is to swat these irritating insects, the work of ROC provides baseline data on mosquito activity across Brisbane and determines where council resources are needed to control and eradicate them.

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There are eleven sites across Brisbane where ROC staff trap mosquitoes. In total ROC staff trap, sort and identify between 300,000 to 400,000 mosquitoes per season from 30 different species groups.

ROC also manages the aerial treatment program, investigates mosquito complaints, and undertakes exotic mosquito surveillance and treatment responses. Their busiest times are of course the warmer, wetter months (November to April) which are ideal for mosquito breeding.

ROC is a modern purpose-built facility owned and managed by CBIC. Staff say the facility is fit-for-purpose, well connected with transport corridors to allow rapid response to callouts like faulty traffic lights and brings together their various functions in a single place to allow collaboration.

Financial Statements 2022

Below you’ll find a certified & signed copy of the financial reports for City of Brisbane Investment Corporation (CBIC) for the year ended 30 June 2022. 

City Of Brisbane Investment Corporation Pty Ltd (Consolidated)
ACN 066 022 455 

Download Financials PDF