This article is from the Australian Property Journal archive
Brisbane’s central business district continues to run hot with sales as CB Richard Ellis looks to complete a hat trick of landmark sales in as many months.
In the last few weeks, CBRE have sold 243 Edward Street to a private investor for $35 million and just yesterday entered the final stages of short listing several companies for the sale of 50% of the landmark ANZ Centre at 324 Queen Street for in excess of $100 million.
Now, CBRE has launched an expressions of interest campaign to sell the Flight Centre headquarters at 316 Adelaide Street, Brisbane, which could fetch in excess of $30 million, according to property sources.
Flight Centre holds a lease over 66% of the floor space in the prominent Brisbane CBD building.
According to CBRE’s Bill Tucker the Brisbane office sales market remains incredibly strong.
“We have companies taking profits on their investments and new players entering the market for the next wave,” Tucker told Australian Property Journal yesterday.
Malaysian companies SPB, which holds 50% of the soon to be sold ANZ Centre, and Shen Investments are two such groups cashing in their investments.
Shen Investments recently sold 488 Queen Street, Brisbane, to Nick Girdis for $21 million.
Tucker believes the Flight Centre headquarters is an attractive opposition due to the long lease in place to a publicly listed entity and the decided lack of CBD investment properties.
CBRE’s research reported that in the first quarter of 2006, Brisbane’s prime CBD office vacancy rate shrunk to a 25 year low of 3.3%.
According to CBRE senior research manager Craig Godber, the next major addition to Brisbane’s CBD office supply will not occur until 2009, which has translated into a 25% rental growth over the past year.
In 2005, major office sales in Brisbane hit $530 million.
Expressions of interest for the Flight Centre building close with CBRE on June 22.
By Ted McDonnell
