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Brisbane

CBD Golden Tower Listed for $300m

Golden Tower

The country’s biggest office landlord, Dexus, has listed an A-grade office tower in Brisbane’s Golden Triangle, with price expectations of $300 million.

The commercial building, known as “The Gold Tower”, has been offered to the market at a time when few other Brisbane assets are for sale.

The building, which sits on a 3,477sq m island site at 10 Eagle Street, will be Brisbane’s largest listing to hit the market in 2020.

When completed in 1978 the 32-story tower was Brisbane’s tallest building at the time. It comprises 27,826sq m of net lettable area, 247 car parks, and is 91 percent occupied.

The listing is with Savills Queensland managing director Anthony Ott and Knight Frank capital markets partner Justin Bond.

“While investor interest in Brisbane has continued during Covid-19, there has been limited availability of quality investments for sale,” Bond said.

“As such this asset is expected to attract strong pent-up demand from both offshore and domestic investors, with the biggest drawcards being the prime Eagle Street position, diverse income profile and future development upside.”

Brisbane CBD office market has remained quiet in the wake of the coronavirus hitting with no institutional office transactions occurring in the CBD since the sale of 66 Eagle Street in late 2019 by Lendlease, which was picked up by Deka for $380 million.

Dexus, which picked up 10 Eagle Street in 2012 for $195 million, has been selling buildings near book value during the pandemic with hopes that they will hold their values.

Ott said the location of the building, right in the heart of the Golden Triangle and in a premium position along the tightly held Eagle Street, presents a rare opportunity for investors.

“Investors will be drawn to not only the premium location but the future development opportunity to add another building on the site or perhaps extend the floor plates.

“The asset fundamentals of the 10 Eagle Street tower also complimented Brisbane’s most active tenant market at the moment, in the 200sq m to 1500sq m size range,” Ott said.

The property is near major CBD infrastructure projects in Brisbane, with $12.8bn in developments, including the Cross River Rail and the waterfront precinct redevelopment, driving the area.

Across the road, Dexus is forging ahead with plans for a $2.1 billion twin-tower project on the city’s riverfront.

Dexus has honed plans for two towers of 49 and 43 floors as part of broader plans proposed to transform the Eagle Street Pier and Waterfront Place.

If approved, the commercial precinct will be delivered over two stages, with the first stage involving the construction of public realm spaces, riverwalks, podium levels, basement, and north tower. The second stage will involve the construction of south tower.

Last September, Dexus also took control of a property ripe for development with approval for a 274-meter skyscraper in Brisbane’s Golden Triangle.

With the off-market acquisition of the retail building at 171 Edward Street, Dexus has quietly opened talks with its Catholic Church neighbour with a view to engaging in a larger joint venture.

 

The post “CBD Golden Tower Listed for $300m” by Ted Tabet appeared first on the theurbandeveloper.com Blog

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Brisbane

Mirvac Sells Golden Triangle Tower for $87m

Golden Triangle Tower

Melbourne-based property fund manager Forza Capital has picked up a prominent office building in Brisbane’s “Golden Triangle” from Mirvac for $86.7 million.

The property, located at 340 Adelaide Street—on the corner of Adelaide and Wharf Streets, comprises 12,800sq m of B-Grade office space across 17-levels, together with a ground floor cafe and parking for 100 cars.

In recent years, Mirvac has refurbished the building, upgrading the lobby and repositioning the external ground plane and retail.

Mirvac chief investment officer Brett Draffen said the proceeds from the sale will be redeployed into prime and A-grade commercial assets as well as its $22.4 billion development pipeline across the residential, office and industrial sectors.

The deal, negotiated by CBRE’s Flint Davidson, Tom Phipps and Bruce Baker, represents an 11 per cent premium to its book value in June.

“As the first major, post-Covid capital markets transaction in the Brisbane CBD, this deal highlights the demand from onshore investors for quality office assets,” Phipps said.

Golden Triangle Tower1

The building is 93 per cent leased to tenants Covermore, Cerebral Palsy League and Oracle, and has a weighted average lease expiry of 3.8 years. Image: Supplied

“As travel restrictions ease we expect the market to awaken in the first half of next year fuelled by historically low financing costs and Brisbane’s attractive yield spread.”

Forza Capital director Ashley Wain said the asset represented exceptional value, given the building’s comprehensive refurbishment program, and was transacted with a high degree of certainty over a period of one month.

“Shortly after Covid struck, [we] identified the opportunity to prepare our investor base of sophisticated investors for opportunistic property investments.

“Speed to transact was anticipated to be critical and we believed getting early capital commitments and being able to transact quickly would be paramount to securing new investments on attractive metrics,” Wain said.

The acquisition represented $52.5 million of equity from Forza’s client base of family offices, high net worth advisory groups and individuals, and will now sit in the newly-established Forza 340 Adelaide Street Fund.

“The uncertainty in office investment markets has created really attractive investment metrics which, when combined with highly competitive debt funding, results in a target 8 per cent per annum distribution yield over the first five years of the investment,” Wain said.

Last week, Dexus listed a neighbouring A-grade office tower, located at 10 Eagle Street, with price expectations of $300 million.

 

The post “Mirvac Sells Golden Triangle Tower for $87m” by Ted Tabet appeared first on the theurbandeveloper.com Blog

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Brisbane

Yeronga trophy home fronting the Brisbane River listed

Brisbane River

A riverfront Yeronga, Queensland trophy home has been listed without a price guide.

The five bedroom, five bathroom abode is being marketed by Heath Williams and Nick Hurwood of Place.

Situated at 363 Brisbane Corso, the tri-level home fronts the Brisbane River.

Set on 916 sqm, it features two swimming pools and a private boat pontoon.

Other features include full-height stacked glass sliding doors opening out to a covered balcony which capture sweeping Brisbane River views as well as a ground-level rumpus or games room equipped with a bar, a projector and a linked balcony.

It is located seven kilometres from the CBD.

 

The post “Yeronga trophy home fronting the Brisbane River listed” appeared first on the propertyobserver.com.au Blog

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Brisbane

Mirvac offloads Brisbane office building for $87m

Mirvac office building

Mirvac has offloaded a 17-storey office building in Brisbane to Melbourne-based property fund manager Forza Capital for $86.75 million in one of the first institutional grade office deals to take place in the city since COVID-19 struck.

The building, which is in Brisbane’s ‘Golden Triangle’ at 340 Adelaide Street, had undergone an extensive refurbishment by Mirvac and sold at an 11 per cent premium to its last book valuation in June.

The property, which is 93 per cent leased to tenants such as Oracle, Cover-more Insurance and the Attorney General’s Office, has a 3.8 year weighted average lease expiry.

Brett Draffen, chief investment officer at Mirvac, said proceeds from the sale would be redeployed to grow its asset creation business and would allow the group to “capitalise on opportunities to create Australia’s next generation of workplaces, residential communities and mixed-use precincts”.

The office tower is the first asset to be acquired by Forza Capital following a $240 million capital raising from its client base of family offices and high net worth advisory groups in September and will sit in the newly established Forza 340 Adelaide Street Fund.

Forza Capital director Adam Murchie said they had advised their investor base to be prepared for opportunistic property investments shortly after COVID-19 had struck.

“Speed to transact was anticipated to be critical and we believed getting early capital commitments and being able to transact quickly would be paramount to securing new investments on attractive metrics.”

Forza Capital director Ashley Wain said the uncertainty in the office market had created attractive investment metrics.

“When combined with highly competitive debt funding [the metrics] result in a target eight per cent per annum distribution yield over the first five years of the investment.”

The deal was negotiated by CBRE’s Flint Davidson, Tom Phipps and Bruce Baker, and Matt Lawrence arranging the debt.

“As the first major, post-COVID capital markets transaction in the Brisbane CBD, this deal highlights the demand from onshore investors for quality office assets,” Mr Phipps said.

“As travel restrictions ease we expect the market to awaken in the first half of next year fuelled by historically low financing costs and Brisbane’s attractive yield spread.”

 

The post “Mirvac offloads Brisbane office building for $87m” appeared first on the afr.com Blog
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