This article is from the Australian Property Journal archive
BRISBANE’S biggest settled strata transaction in 2019 to date has seen a Sydney based investor pay $5 million for a level two office in Spring Hill.
The 1,374 sqm space at 170 Leichhardt St is tenanted by Imagine Education Australia on a seven-year term with a three year option and includes a 22 sqm balcony area and nine car parks.
Sam Biggins and Tony Wang from Colliers sold the property through expressions of interest.
The Oxygen Building is managed by AIMS, and its commercial and retail floors are held through one of their unlisted funds. AIMS manages over $2 billion across the Asia Pacific region.
Biggins said this was the first commercial property acquisition for the high net worth Sydney-based investor, who works in the finance sector, who was “particularly attracted by the levered cash-on-cash return the property could deliver”.
“The strength of the covenant was particularly appealing considering the education sector tenant is a well-established business operating campuses across Gold Coast and Brisbane since 2005 and are currently experiencing significant growth.
“With current record low interest rates and decreasing vacancy rates in the Brisbane office sector, we are continuing to see interstate investors looking to Brisbane, attracted by the yield differential and growth prospects over the southern markets.”
Colliers International strata office sales in Brisbane’s CBD and the metropolitan area this year have averaged $3,851 per sqm and a yield of 7.88%. They have included four offices within 97 Creek St ranging from 63 sqm up to a full floor of 638 sqm, with one trading on a yield of 6.2%.
“Long term investors are backing the strata market, but sales to owner occupiers are also on the rise as the leasing market continues to improve in combination with record low interest rates,” Wang said. “The major infrastructure boom in Brisbane has had a very positive impact on business and buyer sentiment.”
