This article is from the Australian Property Journal archive
DEVELOPMENT in and around the Brisbane CBD’s North Quarter precinct has driven funds management company Aviator Capital’s circa $50 million purchase of a 10-level office tower.
The 193 North Quay building is on a prominent corner and has 7,631sqm of net lettable area including ground floor retail tenancies and one level of secure basement parking. Regarded as a business destination for smaller corporates, it offers a diversified cash-flow with a weighted average lease expiry of 2.8 years by area, with a staggered expiry profile among its legal, engineering and tech firms occupants.
It is well-placed to benefit from the redevelopment of the former Transit Centre site into the Cross River Rail station and proposed 15,000-seat Brisbane Live venue, which will provide upgraded public transport facilities and new community infrastructure.
Aviator Capital managing director Andrew Glen said the surrounding surge in development had underpinned the company’s interest in the asset – its first acquisition in the Brisbane CBD – providing a rare opportunity to leverage off public and private expenditure in the precinct.
“The property holds a prime riverfront position in a sector of the Brisbane CBD that is set to benefit from enormous surrounding infrastructure development and we were attracted to the fundamentals of the building as an office asset, as well as the longer-term development proposition,” he said.
Also among city-shaping project is Dexus’ $2.1 billion Eagle Street Pier and Waterfront Place project, which will see the 30-year-old Eagle Street Pier building make way for two towers of 49 and 43 floors across a total of 120,000 sqm of office space, as well as riverfront dining, retail outlets and public plazas with a widened and upgraded Riverwalk for pedestrians and cyclists.
Commercial property transaction volumes in Queensland have picked up in 2022 where they left off last year, with $5 billion in deals recorded at the halfway mark as the state enjoys population growth and a growing economy, and looks ahead to the 2032 Olympics in Brisbane.
CBRE’s Jack Morrison, Peter Chapple and Adelaide O’Brien brokered the sale of 193 North Quay on behalf of Kyko Group, with interest coming from offshore and onshore investors.
Kyko Group director Bill Jenkings said that after purchasing the asset in 2007 and enjoying strong returns the timing was right for us to sell.
“This transaction will help Kyko Group further focus on markets in which we are actively seeking opportunities with the Sydney office market being a key target.”
