Property Development

Telstra Sells Brisbane Telephone Exchange for $57m

Dexus Completes Industrial Estate in Western Sydney
Written by The ReReport
As seen in the Source link, written by theurbandeveloper.com on 2019-06-27 18:10:46

Singaporean-based investment manager Firmus Capital has snapped up Telstra’s 10-storey commercial building in Brisbane’s “golden triangle” for $57 million.

The asset was sold with a six-year leaseback to Telstra, solidifying Firmus Capital’s income for the site with potential redevelopment options for retail or office space.

The move marks Firmus Capital’s second Brisbane CBD buy in a 12-month period, following its 127 Creek Street acquisition for $130 million this time last year.

Firmus Capital, led by co-founder of Rockworth Capital Partners Lim Su Kiat, formed the investment management company in November 2017, which now has commercial real estate investments across Australia.

The precinct has operated as a telephone exchange since the 1880s, with 175 telephone services available 24 hours a day, seven days a week from 1883. Telstra has occupied the current building, at 280 Elizabeth Street, since developing it in 1963.

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Knight Frank’s Justin Bond said the international expressions of interest campaign received interest from local and offshore buyers.

“We were inundated with interest from private to institutional investors from all parts of the world attracted by the rare opportunity to secure a premium site with future redevelopment potential in the heart of Brisbane CBD’s Golden Triangle,” he said.

The building has 12,200sq m of gross floor area, on a 1675sq m CBD site.