Asset managers trade modern suburban office
EXCLUSIVE
Trilogy Funds has taken a hit selling a modern suburban Brisbane office held eight years.
The three level A-grade building at 38 Southgate Avenue, Cannon Hill, is finding favour with Natgen for $22 million – a 7.8 per cent net passing yield based on the rent when it was listed last June.
Within the Southgate Corporate Park, it contains 3489 square metres of lettable area.
Also with 88 basement car parks, carrying a 5-star NABERS rating, it occupies a 2054 sqm plot.
Trilogy paid $22.65m in 2017.
That seller, Hellenic Property Investments, picked it up from the developer, Anthony John Group, for $17.25m in 2013.
Natgen boosts book
Natgen will hold the office in a fund, the Natgen Investment Trust SG25, now calling on investors to the tune of $14.5m, aiming for 8.3pc per annum distribution, over a five year year hold.
“This acquisition reflects our view that the fundamentals are turning for the office sector,” managing director, Steven Goakes, said.
“High-quality assets in infill, well-connected locations like this are increasingly difficult to replicate – yet tenant demand is returning and leasing conditions are improving,” he added.
Colliers’ Sam Arkell and Hunter Higgins brokered the sale.
Cannon Hill is six kilometres east of town.
The property neighbours an office, the headquarters of jeweller, Michael Hill, which Irongate bought for $40.5m, settling in mid-2022.
Elsewhere in south east Queensland Natgen holds an industrial development site at Yarrabilba, south of Brisbane.
On the Gold Coast, it owns a rural residential plot at Yatala and a Southport day hospital, acquired in December.
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