This article is from the Australian Property Journal archive
A PRIVATE Singaporean buyer has launched into Australia by acquiring a Brisbane CBD retail investment on a record rate of $23,298 per sqm.
CBRE’s Mike Walsh, Andrew Adnam and Peter Court negotiated the sale the 105 Elizabeth St building, directly opposite the Myer Centre, for $6.5 million.
They said the sale rate of $23,298 per sqm of NLA sets a new Brisbane CBD record for retail assets outside of the Queen Street Mall.
Walsh said the sale campaign had generated significant interest, with more than 120 enquiries.
“More than half of the enquiries originated from interstate and overseas parties, who were attracted to the long-term growth outlook for the CBD and the comparatively attractive returns on offer in Brisbane.
“Six offers were submitted – including three overseas bids. What was interesting to note was the clear distinction between domestic and offshore pricing, with the average offshore bid being 10% higher than the average domestic bid,” Walsh said.
Adnam said only 14 freestanding properties under $10 million have transacted on Elizabeth St in the past 20 years, so this property was a rare offering.
“The sale provided a rare opportunity to secure a foothold in a prized location that has significant ongoing appeal for city retail tenants,” he added.
The 279sqm building is situated on a site area of 516sqm. It is fully tenanted, with the current income translating to an initial yield on the sale of 6.09%. Existing tenants are skin care and health food retailer Sini Care and popular desert bar and high tea franchise Passion Tree Café.
The asset also offers future development potential, with potential to redevelop the building up to eight storeys subject to approvals.
Australian Property Journal
