Brookfield looking to cash in Commbank anchored Brisbane tower

A HIGH-profile in the Brisbane CBD’s Golden Triangle has hit the market in a 27-level A-grade commercial building at 240 Queen Street, as Brisbane’s office market heats up.

Brookfield’s 240 Queen Street, sitting on one of the city’s most prominent retail corners, offers 27,632sqm of net lettable area, comprising 24,922sqm of office space and 2,710sqm of retail space, in addition to 94 car bays.

Justin Bond, Ben Schubert and Neil Brookes from Knight Frank, alongside Paul Noonan, Seb Turnbull and Kate Low from JLL, have been appointed to sell the asset via an international expressions of interest campaign on behalf of Brookfield.

“Due to the rarity of the offering, in addition to its market-leading fundamentals including location, quality and income security, we expect strong significant domestic and international buyer interest in the asset,” said Bond.

Bond noted that on average there is less than one opportunity each year to acquire an institutional-grade asset of the size and value in the Brisbane CBD.

Anchored by the Commonwealth Bank of Australia, the tower sits on a 2,127sqm site on the corner of Queen Street and Edward Street at the entrance of Queen Street Mall.

“This property gives buyers a chance to acquire a premier office building with undoubtedly the best retail position in the Brisbane CBD,” said Noonan.

“It benefits from being the most highly populated corner location in the city, surrounded by an abundance of premium retail, office, entertainment and transport amenity.”

Commonwealth Bank occupies three levels of retail space, having leased the space since the asset was constructed by the bank, with its term running until September 2029.

“CBD multi-tenant office assets with a four year-plus WALE are rare and highly sought after and this building also offers future upside with the potential to transform the retail component post CBA’s lease expiry to cater for multiple luxury retail tenancies,” added Bond.

Currently, the building is approximately 93% occupied, with a WALE of 4.18 years and other major tenants including the Commonwealth of Australia (ASIC), architects Conrad Gargett –who designed the building, Multiplex, Hall Chadwick and Christie Spaces.

240 Queen Street also provides high ESG credentials, while over 75% of tenants are enjoying first generation fitouts, keeping the cash flow profile of the asset strong.

“Confidence is high in Brisbane with the city’s significant growth trajectory being undeniable, with strong historical rental growth, especially in the premier office precinct The Golden Triangle further enhanced by approximately $17 billion worth of infrastructure developments,” said Bond.

Earlier this month, Brisbane was name as one of the top performers in CBD office markets, with vacancy tightening from 13.9% to 12.9% over the last six month and rates only expected to come down further with no stock additions planned for 2023.

The international expressions of Interest campaign for 240 Queen Street is set to close on 23 March 2023.