This article is from the Australian Property Journal archive
INTERESTS associated with Bloomberg Incorporation Limited – the owner of Riparian Plaza, and which launched a legal challenge over Dexus’ $2.1 billion Waterfront Brisbane development – has picked up an inner-city office and retail complex for $55 million.
The 1 Breakfast Creek Road (1 BCR) property at Newstead has two buildings that include a A-grade office tower and retail annex on a site of 5,981 sqm.
Designed by Cox Rayner, 1 BCR has 6,904 sqm office, retail and services accommodation across five tower levels plus basement and the single level retail building, and recently underwent upgrades including the reinvigoration of the ground floor amenity, new cafe and refreshment of landscaping.
It has a 3.38-year weighted average lease expiry across the buildings, and sold on a yield of 6.3%.
The sale lands hot on the heels of RF Corval selling a fully leased A-grade office building of 5,040 sqm in the riverside suburb of Hamilton for $46.5 million.
The 1 BCR sale was finalised by Jonathan O’Brien, Mike Walsh, Peter Court and Frederic Le Fanue of Cushman & Wakefield and Bruce Baker, Jack Morrison and Adelaide O’Brien of CBRE on behalf of a Gold Coast private investor.
Morrison said land rich assets in marquee locations will always be well sought after and 1 BCR offers a hugely prominent inner city offering that will continue to attract quality corporate occupiers.
“This transaction follows the trend of private investors picking up high profile assets in inner-city Brisbane ahead of the anticipated growth of population and employment base. 1BCR offers both secure income and plenty of upside in one of Brisbane’s most affluent locations, which saw syndicators and private investors aggressively compete to secure the property,” he said.
O’Brien said the Newstead/Gasworks and Fortitude Valley combined precinct is a highly desirable and internationally recognised destination for both institutional capital as well as large corporate and multinational occupiers, with the immediate precinct having seen $2 billion in transactions in the area over the last five years. Key domestic and international institutional groups present in the area include Centuria, Charter Hall, Mirvac, Growthpoint, Cromwell, M&G, Arkadia, AMP, Abacus, DWS, Credit Suisse, ISPT and Lendlease.
Bloomberg has been a consistent critic of Dexus’ development and launched a legal challenge over the city-shaping $2.1 billion Waterfront Brisbane development, which will see the introduction of 49 and 43-level office towers, new dining and retail and 9,000 sqm of public riverside space next to Bloomberg’s 53-level Harry Seidler-designed Riparian Place tower.
Bloomberg appealed to the Planning and Environment Court after Brisbane City Council approved the project at the end of 2020, saying the decision to approve the project with amended conditions – including increasing gross floor area, adding more bars and restaurants and increasing works on the River – breached planning laws. Residents of the Riparian tower have publicly complained that the new development is excessive.
