This article is from the Australian Property Journal archive
A BRISBANE-based private investor has picked up two restored and fully occupied city fringe office buildings for $46.6 million.
Located in a highly connected near city office precinct, the two buildings at 159 Coronation Drive and 5 Cribb Street are on a 3,624 sqm riverfront land holding and have recently been restored to an A-grade standard following an extensive capital expenditure program, the purchase provides investors.
Tenants comprise a mix of eight global, national, and local tenants, providing a weighted average lease expiry of over 4.5 years. with a diversified cashflow and a net income of $2.85 million.
CBRE agents Jack Morrison and Adelaide O’Brien brokered the deal for vendor Wallum Partners who purchased the property for $26 million in 2019.
This sale is the third major middle markets office transaction in Brisbane to be sold to a private investor in the past month.
“This wave of activity in the first half of 2022 demonstrates that quality property in Brisbane is highly contested, particularly assets with stable income profiles and significant land holdings,” Morrison said.
Brisbane’s office market was the fifth most active property market overall in the first half of 2022, with 6% growth in transaction volumes for $1.591 billion.
O’Brien said that in a market where the cost of construction materials has increased significantly, assets that have recently undergone extensive capital works programs provide a safeguard against additional cost outlays and are positioned to capitalise on future rental growth.
159 Coronation Drive is within a one kilometre radius of major city shaping projects including Cross River Rail, Queens Wharf and Brisbane Metro, all of which are due for completion prior to 2026 in preparation for the 2032 Olympics.
The property also adjoins Milton Green, which was endorsed by Shayher following its recent $400 million acquisition earlier in 2022.
