This article is from the Australian Property Journal archive
BOUTIQUE fund manager Forza Capital is hoping for more than $60 million for a Brisbane CBD office storey the property investment group has spent the last few years greening up.
Forza Capital acquired the 10-storey 200 Creek Street building in 2021 for $41 million. It has since invested over $13.5 million introducing new lifts, a new solar array system, end-of-trip facilities and ground floor upgrades. As the result the building has achieved a 6-Star NABERS Energy Rating, joining only five other buildings in Brisbane to secure the highest rating.
200 Creek Street has 7,582 sqm of floor space and is being offered with 100% occupancy and strong leasing covenants. It generated $4.5 million annually and has a 3.9-year weighted average lease expiry (WALE), making it poised to capitalise on anticipated rental growth in Brisbane’s tightly held CBD market. Commercial rents have increased 13.3% since 2023 a limited expected pipeline of new stock is tipped to maintain upwards pressure.
It features flexible 769 sqm floor plates with abundant natural light and includes 78 car spaces. The tower is perched on a prominent corner, a three-minute walk from Central train station.
Mike Walsh and Peter Court of MP Commercial have the listing. It marks the fourth sale campaign led by the pair, having managed the asset’s sale three times over the last 14 years.
They expect significant interest in the asset from domestic syndicators and high net worth private investors.
“These investors will be drawn to the robust income profile in a market where income protection and strong cash flow remain a priority given financing costs may take time to temper and settle at longer-term mean levels,” Walsh said.
Court said investors continue to show strong confidence in the Brisbane office market, with increased inquiry levels across the sector.
“With construction costs at all-time highs, the substantial capex program undertaken by Forza and best in class ESG credentials will be viewed favourably by the market.”
Expressions of interest close March 13th.
Elsewhere in the CBD, the Queensland Country Bank has just splashed $19 million on the 3,044 sqm, six-storey building at 247 Adelaide Street for its Brisbane-based administrative teams and a new branch. At the bulkier end of the market, late last year Aware Real Estate confirmed it had paid $215.5 million for its first Brisbane office building, the 27,555 sqm, 27-storey 145 Ann Street, with 84% occupancy and a (WALE) of 3.5 years by income, while Quintessential completed its $250 million acquisition of the 240 Queen Street tower, with the fund manager bullish about the Brisbane CBD’s prospects running up to the 2032 Olympics and beyond.
