This article is from the Australian Property Journal archive
BRISBANE’S tallest building, Brisbane Skytower, has sold off its commercial portfolio for $32.846 million to a Sydney-based investor, in the biggest settled volumetric transaction for the city.
Billbergia Group held the prime asset, covering four asset classes the portfolio included 10 tenancies anchored by the commercial carpark, Arise Hotels and Apartments, and national operator Kids Club Early Childhood Learning Centres.
The sale price garnered for the portfolio reflects $9,190/sqm and an approximate 5.50% capitalisation rate.
Tom O’Driscoll, Nick Wedge and Tony Wang from Colliers’ managed the competitive international expressions of interest campaign, which attracted 119 enquiries, 11 inspections and 7 offers.
“The level of inquiry we received from this campaign was incredibly strong, leading to seven quality offers across all buyer profiles be it HNW investors, syndicators and institutional capital,” said O’Driscoll.
The portfolio has a NLA of 3,574sqm and offers a net income per annum of $1.8 million plus GST.
“Brisbane Skytower commercial portfolio is a premium asset, and this is the first time a holding of this kind has been offered in the CBD. The diversity and calibre of the tenants, and the property’s strong cashflow, affirms its appeal as a gilt-edged commercial investment,” added Wedge.
The fully leased property includes a WALE of 11.27 years, with staggered lease expiries for de-ricked cashflow.
With strong exposure to commercial health, childcare, retail and commercial car park sectors, the portfolio was offered for sale as individual lots or in one line.
“Brisbane Skytower is prime real estate within the city precinct. For several years post the 2009 financial crisis, the site was nothing more than a 23-metre-deep hole and accommodated flooding waters from Brisbane River and neighbouring properties,” said John Kinsella, managing director of Billbergia.
The 2019-completed mixed-use Brisbane Skytower, located at 222 Margaret Street, was developed by Billbergia and AMP Capital and includes 1,139 apartments across its 88-storeys.
“The result is a quality, popular, mixed-use development that offers unique commercial/ retail suites and sky rising apartments to a variety of investment or lifestyle interests,” concluded Kinsella.
The sale of the Brisbane Skytower commercial portfolio was settled on 19 October, 2021.
