ASX-listed Charter Hall has again dipped into Brisbane’s office market with the acquisition of 61 Mary Street in the city’s CBD for $275 million.
The 17-level office tower was sold by QIC Global Real Estate and will now fall into Charter Hall’s unlisted District Office Fund (DOF) adding to a $1.7 billion real estate portfolio in assets under management on behalf of its high net worth and SMSF investors.
The property, which completed a $38 million refurbishment works program in 2018, is in the core Brisbane’s government precinct and is 100 per cent leased to the Queensland Department of Transport and Main Roads until 2029.
The property strategically plays into Charter Hall’s long-standing focus on assets with long-leased government and credit rated tenants.
The Mary Street building also offers some of the largest floor plates available in the CBD, between 1,525 and 2,030 square metres and sits on a sizeable 3,646sq m site while also holding a 5 Star NABERS energy rating.
“The office market is extremely competitive for high quality long WALE investment assets, particularly leased to government and credit rated tenants,” Charter Hall Office chief executive Adrian Taylor said.
“This investment extends the relationship the Charter Hall Group has with the Queensland Government as a tenant customer and further extends our significant investments in the Brisbane CBD where we are seeing improving market conditions and positive rental reversion drivers.”
CBRE’s Tom Phipps, Bruce Baker and Flint Davidson and Knight Frank’s Justin Bond, Ben McGrath and Neil Brookes brokered the property which drew strong interest from offshore investors.
Brisbane’s commercial deal flow is gaining pace with Charter Hall’s recent $93 million acquisition of 40 Tank Street, a half share in B-grade office building Capital Hill at 85 George Street for $60 million as well as the acquisition of a property on Turbot Street on behalf of Singapore’s GIC in May for $108 million.
The pace of development is also lifting, with Mirvac’s $836 million project at 80 Ann Street and a $650 million office tower on Queen Street a joint venture between Charter Hall and Investa winning approval.
Charter Hall also acquired a high-profile development site for No. 1 Brisbane, a proposed 81-storey skyscraper on Brisbane’s Queen Street Mall that won approval in 2017.