This article is from the Australian Property Journal archive
HOT on the heels of spending $44.3 million on a Parramatta building, the City of Brisbane Investment Corporation (CBIC) has moved to divest an A-grade office building at Yeerongpilly, leased to the Brisbane City Council.
Agents Cushman & Wakefield and Savills have been appointed to sell a three-storey property at 665 Fairfield Road, Yeerongpilly, located within 5.5km south of the Brisbane CBD.
Cushman & Wakefield’s joint heads of middle markets QLD, Mike Walsh and Peter Court along with Nick Spiro, and Savills’ state director Peter Chapple and Gregory Woods will manage the on-market expressions of interest campaign on behalf of CBIC, due to commence on 1 April.
Constructed in 2012, the 4,198 sqm building was purpose-built for the Brisbane City Council. It is being sold fully leased with a WALE of 8 years, and a further two x 5-year options to extend. There are also 71 car spaces on site.
Walsh said the property offers significant opportunity for investors to secure a high-quality office building with income underwritten by a long-term lease to Brisbane City Council.
“Located in an affluent and growing inner-city area, the property is also poised to benefit from major surrounding development activity. This includes Consolidated Properties’ $850m Yeerongpilly Green project which will include a Woolworths-anchored shopping hub and more than 55,000 sqm of commercial space,” he said.
Court said, “We expect strong demand from local and offshore investors, as the market for properties with a minimised risk profile and AAA government-bond-like covenants remains highly competitive. Overall, the fundamentals of the Brisbane market remain positive and we continue to see aggressive appetite for well positioned commercial building with yields continuing to compress in testing cyclical lows.”
Chapple also added that the tenancy to Brisbane City Council will attract interest from all investor types.
The listing comes after CBIC spent $44.3 million earlier this month to buy an A-grade office building in Parramatta.
Australian Property Journal.
