This article is from the Australian Property Journal archive
LOCAL developer Capricorn Asset Management Pty Ltd has netted $13.2 million for a Brisbane CBD office building, showing capital of 43% over just three years.
The 33 Herschel Street property in the CBD’s North Quarter is one of only three sub-$20 million freehold commercial office buildings transacted in the Brisbane CBD in the past year.
Colliers agents Tony Wang and Troy Linnane and Cushman and Wakefield agents Andrew Gard and Michael Gard managed the sale of the property to a local Asia-Pacific education operator on a passing yield of 4.47%.
Constructed around 1975, the three-level building has 1,749 sqm of net lettable area and underwent a comprehensive refurbishment in 2013. It is on a 911 sqm freehold site with principle centre 1 zoning and has development potential up to a height of 274 metres.
Currently, the property is fully occupied by contractors involved in the delivery of Cross River Rail development and the purchaser will take possession after the current lease expiry.
“Even though there have been several unsuccessful commercial asset marketing campaigns with the lowest levels of office transactions in Brisbane since the onset of the COVID-19 pandemic in 2020, there remains a strong influx of Asia-Pacific capital into Brisbane’s commercial real estate market including investors, owner-occupiers, and developers,” Wang said.
“We are witnessing strong buyer interest for assets sub-$30 million with Australia continuing to be highly sought after for Asian investors given its stable fundamentals and globally comparative resilience and value, especially when we look at the European and US markets.”
