Property Development

Brisbane Tower Hits the Block in Strong Office Market

Written by The ReReport
As seen in the Source link, written by on 2019-02-14 16:45:49

A recently refurbished commercial office tower located in Brisbane’s golden triangle will hit the market this month.

Owners Fortius Funds Management and two BlackRock-managed private funds will test buyer demand for the 16-storey CBD tower, tipped to attract local and offshore interest.

The building, located at 201 Charlotte Street, was picked up for $81.5 million in 2015.

The A-grade office tower sits on a 1,839sq m site, providing 13,291sq m of net lettable area, and could garner interest for more than $130 million.

Justin Bond of Knight Frank and Flint Davidson of CBRE have been appointed to market the property, the duo say anchor tenant Anglo American have recommitted to the building until 2028.

“One of the attractions of 201 Charlotte Street is its anchor tenant, Anglo American, which is the third largest metallurgical coal mining company in the world, with a market capitalisation in excess of $40 billion,” Bond said.

Davidson said the property sits in proximity to all major CBD infrastructure projects in Brisbane, with $12.8 billion in developments located within a one-kilometre radius.

“This includes the Cross River Rail, which is 300 metres away, Queen’s Wharf, which is 500 metres away and Dexus’ Eagle Street Pier redevelopment, which is just 60 metres away.

In terms of the Brisbane metro office market, Bond said investor interest accelerated over 2018.

“And while demand has been particularly strong from overseas investors, we have seen a significant increase in cross-border capital, and yields have continued to tighten across the market,” he said.

Given strong fundamentals Bond expects Brisbane will continue to draw the attention of investors during 2019.

Also located within Brisbane’s ‘golden triangle’, the 10-storey Edison Exchange building, owned and home to Telstra, hit the market last month.

Other recent Brisbane CBD transactions include the $52.25 million sale of 293 Queen Street to US property giant LaSalle in December.

Rockworth Capital Partners purchased a 17- storey office tower at 100 Edward Street, within the golden triangle, for $60 million in an off-market deal last August.