This article is from the Australian Property Journal archive
PRIVATELY owned family company Jen Retail Properties has snapped up a 12-level office building at Eagle St In Brisbane's CBD for $24.5 million.
McVay Real Estate sold the asset on behalf of UK property fund manager Standard Life’s Select Property Holdings, which bought it in 2008 for $37.5 million from the Trinity Property Trust.
TPT had paid $12.03 million for the building in July 2004.
McVay Real Estate partner Ben McGrath said the property had been previously listed for sale, but withdrawn from market until new leasing deals were secured.
“As at the date of sale, the property was 91% leased with a WALE of 3.3 years (by income), inclusive of a 12 month rental guarantee on level 4 of $212,300.
“The vendor agreed (upon settlement) to deduct all outstanding incentives, totalling $927,855 on a PV basis, from the purchase price. The $212,300 rental guarantee was also deducted from the purchase price resulting in a net sale price at settlement of $23,359,845,” he said.
The 12-level office building comprises 4,564 sqm of net lettable area, with average floor plates of 386 sqm. 230 sqm prime retail space is provided on the ground floor, with 12 basement car bays.
It is currently returning a gross passing income of $2,736,456 and net passing income of $1,785,812, based on a 91% occupancy. The weighted average lease expiry is 3.3 years by income and 3.1 years by area.
The sale price represents a rate of $5,368 per sqm and an initial yield of 7.64% with a potentially fully leased yield of 8.18%. Incentives are currently around 30%.
Property Review
