This article is from the Australian Property Journal archive
A 100% interest in a Brisbane CBD office tower is on the market for the first time in the property’s history as investment activity returns to pre-pandemic levels following Dexus’ $285 million sale of 10 Eagle St.
The 23-level building at 444 Queen Street is entering the market through an international expressions of interest campaign, with a 100% interest on offer for the first time in 56 years.
Abacus Property Group own 67% of the property, with the remaining 33% being owned by the Public Trustee of Queensland.
The sale and campaign will be managed by Justin Bond and Blake Goddard of Knight Frank and Tom Phipps, Peter Chapple and Bruce Baker of CBRE.
“Aside from its ideal location, the property is one of Brisbane’s best value-add opportunities, offering a rare 100% ownership along with a significant refurbishment and leasing program or perhaps a redevelopment,” said Bond.
The tower contains 13,968sqm of net lettable area, on a 1,708sqm site within Brisbane’s Golden Triangle, additionally the property offers 72 car bays.
“Repositioning the asset would bring it up to an institutional-grade asset, with opportunities under the current town planning guidelines including redevelopment into a hotel, build to rent, or a residential and commercial building up to 274 metres in height,” added Bond.
444 Queen Street is currently at 76% occupation, with joint owners the Public Trustee of Queensland, amongst its major tenants.
“The Brisbane market has not experienced a true value-add opportunity at this price point in some time, and believe this opportunity will appeal to private investors, developers and institutional investors,” said Bond.
With projects such as Queen’s Wharf, Cross River Rail and Brisbane Metro currently underway for a cost totalling more than $10 billion, the Brisbane CBD is experiencing a major revitalisation.
“These projects with bring a new level of transport infrastructure and entertainment amenity to the Brisbane CBD, along with city shaping projects including the Howard Smith Wharves, Dexus Waterfront Precinct and Charter Hall and Investa’s 360 Queen Project.”
According to Phipps, the tower’s versatile floor plates and views of the Brisbane River over Customs House, make this building an attractive prospect for tenants.
“Rarely does a large-scale offering with enormous value-add potential like 444 Queen Street become available,” said Phipps.
The property also offers easy access to a variety of amenities and easy access to transport with the Queen Street Mall, Eagle Street Pier, Howard Smith Wharves and Central Station nearby.
Office occupancy was reported at 64% in February, with activity lifting in the sector already in 2021, after recording a lift in CBD office vacancies in the second half of 2020, from 12.9% to 13.6%.
Transaction activity is rising in the city to pre-pandemic levels, with acquisitions including Marquette Properties’ purchase of 10 Eagle Street for $285 million.
“The immediate precinct has experienced significant uplift in recent years, beginning with the completion of the premium grade 57,000 square metre tower at 480 Queen Street in 2016 and a number of surrounding owners significantly upgrading their assets including 175 Eagle Street, 410 Queen Street, 488 Queen Street, 500 Queen Street and 545 Queen Street,” concluded Phipps.
The international expressions of interest campaign will close on 27 May 2021.
