This article is from the Australian Property Journal archive
THE Australian Unity Office Fund is capitalising on investors demand for premium assets by putting three investments in Brisbane and Canberra on the market after potential suitor Aliro Group withdrew its $570 million takeover bid.
Colliers and Knight Frank have been appointed to sell the properties individually, comprising 150 Charlotte Street in Brisbane, 90-96 York Street in Beenleigh in the City of Logan south of Brisbane, and 64 Northbourne Avenue in the nation’s capital.
AOF’s listing comes as demand for offices increased by 7% to $5.4 billion, according to MSCI.
Occupying a prime midtown location, 150 Charlotte Street comprises approximately 11,080sqm of NLA over the 19-level office building and 97% of income is secured by Boeing Defence and the Australian government.
Jason Lynch and Hunter Higgins of Colliers and Justin Bond and Matt Barker of Knight Frank are handling the sale.
“150 Charlotte Street provides an opportunity to reposition the asset through strategic leasing, asset enhancement works and active asset management. The building fundamentals provide ultimate flexibility to cater for the most active tenant sector of the market,” Lynch said.
“The Brisbane CBD is currently undergoing a transformation, with infrastructure projects in the pipeline and public transport projects set to improve the city, as well as accessibility. Charlotte Street will benefit more than most locations from this activity and shall also be boosted by its proximity to Albert Street, where the first CBD train station in more than 120 years is being built,” Bond said.
Meanwhile Jason Lynch and Hunter Higgins of Colliers and Christian Sandstrom and Blake Goddard of Knight Frank are marketing the brand new seven-level A-grade boutique office building at 90-96 York Street. It offer an NLA of approximately 4,650sqm and a WALE (by income) of 8.4 years, and 86% of income is secured by Logan City Council for 10 years.
Lynch said the property provides the opportunity to secure one of Brisbane’s best quality metropolitan office assets.
“Located within the Beenleigh Principal Activity Centre, the asset provides exceptional ESG qualities targeting a 4.5 Star NABERS energy rating and provides tax effective annuity-style return profile given a WALE of 8.4 years,” Lynch said.
“One of the biggest drawcards of this asset is the strength of the covenant, with a long-term commitment to Logan City Council. Logan Water is occupying the building, having relocated it from multiple different locations into one central location to service the catchment of Beenleigh. It’s also a brand new building with significant depreciation benefits in a central location close to retail amenity and public transport, in the growing City of Logan,” Sandstrom said.
Finally Matthew Winter and Paul Powderly of Colliers and Daniel McGrath and Sean North of Knight Frank are marketing 64 Northbourne Avenue in Canberra.
“The asset provides an attractive value-enhancing proposition given the diversified tenancy and expiry mix as well as the flexible floorplate that caters to multiple tenant types. Strong leasing fundamentals underpin the ACT office market, and in particular the Canberra CBD which supports future renewal or reletting prospects,” Winter said. “The significant site area of 1,500m²-plus with wide exposure, including to the ACT light rail terminus may also provide future redevelopment prospects*.”
“This property will be a well sought-after asset in the changing market, being a multi-tenanted, low risk asset in arguably Canberra’s best location.” McGrath said.
The six-level office provides approximately 6,375sqm of NLA and is 100% leased, of which 50% is underpinned by the Australian government and Defence Force Recruiting.
