This article is from the Australian Property Journal archive
THE City of Brisbane Investment Corporation has furthered its divestment program, offloading the Brisbane City Council offices in Yeerongpilly to WA-based Ascot Capital in a $35.25 million sale and leaseback deal.
Known as the South Regional Business Centre, the 4,198 sqm building at 665 Fairfield Rd and is currently fully leased to Brisbane City Council until mid-2027, with two additional five year options.
The Council’s future fund had placed the asset on the market in March last year.
CBIC acting chief executive officer Kirsty Rourke said that the property is centrally located in an area set for considerable growth over the next few years.
“The SRBC sits directly across the road from Stage One of the Yeerongpilly Green project, which will serve as the ‘town centre’ of the $850 million master-planned community,” she said. The site also has direct access to major road networks, an public transport.
The Yeerongpilly Green mixed use development is currently under construction.
“With a secure, long-term tenant in place and a thriving precinct literally growing around the site, it will be an attractive location for businesses in the long-term,”
Rourke said the sale was an important part of CBIC’s strategic plan to continually evolve and rebalance its property portfolio. The fund has been divesting assets in order to broaden its investments across asset class, sector and geography. Also recently sold have been a Wacol industrial property leased to the Council, for $9.5 million, and a permit approved Fortitude Valley site in the Green Square Close Precinct for $15 million.
“As part of our strategic vision, we are looking to diversify into markets in other locations, including the Sydney and Melbourne metro areas,” Rourke said.
“Rebalancing our investments will solidify the fund’s risk profile as well as its prospects for the continued strong performance CBIC has enjoyed over the past decade.”
The fund spent $44.3 million on an A grade, nine level building in the popular Parramatta office market last year.
Mike Walsh, Peter Court and Nick Spiro of Cushman & Wakefield, and Peter Chapple, formerly of Savills, and Greg Woods of Savills.
Walsh said 13 bids were received in total from both domestic and offshore parties.
“Investors were clearly attracted to the government-backed lease covenant, long term tenure and net lease structure, and given the current climate we expect the market will place a more heightened focus on security of income and covenant moving forward,” Walsh said.
