Abacus, Public Trustee of Qld offload Brisbane office

The Queen Street office has significant development upside.

PGIM Real Estate is paying $54.4 million for a Brisbane CBD office.

The modernised c1965 structure, 444 Queen Street, was listed in April by Abacus Property Group, which holds a 67 per cent stake, and the Public Trustee of Queensland.

On 1708 square metres, it rises 23 levels with 72 car parks.

About three quarters of the 13,968 sqm lettable area is tenanted.

CBRE’s Peter Chapple and Tom Phipps with Knight Frank’s Justin Bond and Blake Goddard were the marketing agents.

Skyscraper potential

Overlooking Brisbane River, in the city’s Golden Triangle, the agents promoted the asset as a value-add or repositioning opportunity.

Alternative uses, they said, include a hotel, residential or Build to Rent investment.

The airspace can make way for a c274m – or c80 storey – skyscraper, about the same height as the Gold Coast’s Q1 without the spire (story continues below).

Busy year for Brisbane CBD deals

Today we reported the City of Brisbane Investment Corporation banked $18.8m for 262 Adelaide St, after four years and a renovation.

Last month, Hines was reported to be outlaying $210m for the State Law Office at 50 Ann St – the same price Fortius paid LaSalle Investment Managers for 307 Queen St.

Axis Capital also sold Cromwell’s Direct Property Fund the ex-Flight Centre HQ (545 Queen St) for $117.5m.

In April, the Canada Pension Plan Investment Board spent $285m on 10 Eagle St from Dexus and Marquette Properties. The month earlier, Ashe Morgan acquired the former Suncorp headquarters (310 Ann St) from the Pidgeon family, which refurbished, extended and re-let it.

Last quarter, Charter Hall and Quad Real also purchased a Brisbane CBD office – paying Kador $65m for the ex-Triple M headquarters at 309 North Quay – a site with significant development upside. The former, with Abacus, also committed $63.5m for a 19-level office at 241 Adelaide St.

This story was amended in October with the buyer of 444 Queen St.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.