This article is from the Australian Property Journal archive
PERTH-based fund manager Primewest has acquired the inner-Brisbane home of radio station Nova FM, paying $20.35 million for the four-level former woolstore at 130 Commercial Road in Newstead.
It marks the second time in less than three years the 4,256 sqm character building has changed hands, after local group Engage Capital sold the property to a private investor for $16.75 million in 2015.
Engage had paid $10.78 million for the property to global cotton traders Dunavant in 2011, before converting it to office use.
The latest deal saw property sell with a one-year rental guarantee, for a fully leased yield 8.96%, and initial yield of 5.38% without the guarantee. Currently, it is 35% vacant and has a 3.4-year WALE, and returns $1,824,803 per annum.
Nova occupies 36% of the building on a long-term deal with options, while 25% of the building’s leases have been renegotiated with sitting or new tenants over the past 12 months.
It has a 4-star NABERS rating and is on a 1,710 sqm site with 51 parking spaces.
CBRE’s Mike Walsh and Peter Court sold the property following an expressions of interest campaign that they said attracted more than 70 enquiries, and saw 23 inspections and nine offers received.
“The clear attraction from the market centred around the asset’s unique heritage features as well as the ability to add significant value from a re-lease and repositioning perspective,” Walsh said.
The site is located 300 metres from AMP Capital’s Gasworks mixed-use precinct.
Primewest had just sold the A-grade office building at 60 Light Square in the Adelaide CBD for $35 million, having paid just $22 million for it less than four years ago.
Australian Property Journal
