This article is from the Australian Property Journal archive
THE City of Brisbane Investment Corporation (CBIC) has offloaded a heritage CBD building for $18.8 million, more than double what it paid for the Adelaide Street property just four years ago.
A Sydney-based investor bought the 1927-built property at 262 Adelaide Street, composed of 1,824 sqm office and 411 sqm ground floor and basement retail.
A staged refurbishment program completed last year brought a new passenger lift, full services upgrade, refurbishment across the lobby, retail and office tenancies, and disability access improvements.
Two thirds of the fully occupied building was leased during the 12 months before it was put to the market earlier this year with a weighted average lease expiry of 3.5 years.
“One of the reasons we bought the property was to preserve some of Brisbane’s remaining CBD heritage, but we also saw the potential to create contemporary workspaces that would appeal to a variety of industries and suit how we work today,” CBIC CEO Kirsty Rourke said.
She said that the property was carefully restored to blend the building’s heritage qualities with the updated technology fit-out and energy efficiency credentials “that tenants expect”.
“We are exceedingly pleased with the result and with the building now fully tenanted – and more than half of those leasing deals achieved during a very uncertain 2020 – this reinforces the desirability and durability of the property.”
“The diversity of the current tenants – including town planners, architects, recruiters and project managers – has breathed new life into the property.”
CBIC bought the property for $9.1 million in 2017. It will put funds from the sale towards the acquisition of new assets.
“CBIC’s primary responsibility is delivering long-term investment growth that helps fund Brisbane’s future amenity needs – in particular, the Council’s program to increase the parks, sporting fields and green space available for Brisbane residents,” Rourke said.
CBIC has divested several assets in recent years, including the Brisbane City Council offices in Yeerongpilly for $35 million in a sale and leaseback deal, and a Wacol industrial property also leased to the Council for $9.5 million.
“Rebalancing our investments continues to solidify the fund’s risk profile as well as its ability to continue to the strong performance the fund has enjoyed for more than a decade,” Rourke said.
The fund spent $44.3 million on an A-grade, nine level building in the popular Parramatta office market in 2019.
The sale of 262 Adelaide Street was brokered via expressions of interest through agents Jack Morrison and Peter Chapple of CBRE.
