This article is from the Australian Property Journal archive
ALTERNATIVE investment managers Barwon Investment Partners have sold a prominent government-leased Brisbane inner city office asset for $38.6 million.
Barwon acquired 55 Russell Street in South Brisbane back in 2021 for $34 million and have now returned a profit on the purchase price, selling to a private investor who plans to landbank the asset.
Elliott O’Shea and Seb Turnbull from JLL brokered the deal in the first major transaction since changes to the temporary local planning instruments (TLPI), which has seen density on the site change from 12 storeys to 30 storeys.
The 4,081sqm three-storey building occupies an elevated 2,153sqm corner site that is fully leased by Queensland state government departments.
Barwon moved to sell the building in line with the group’s review of multiple compelling risk-adjusted return opportunities in the market and plans to reinvest capital.
“Many of the opportunities we are contemplating better align to Barwon’s healthcare strategy than Russell Street, and allocating funds to these opportunities will further refine the portfolio,” said Brendan See, portfolio manager at Barwon Investment Partners.
With the changes to the local TLPI, the Brisbane City Council recently approved the Kurilpa Sustainable Growth Precinct in an effort to combat the housing shortage via sustainable urban development with increased building heights.
“While capital market conditions remain challenging, this transaction signifies the continued strong demand from private investors for well-located properties that boast resilient investment fundamentals,” said O’Shea.
