ADCO sells HQ with a leaseback
Quanta Investment Funds has bought another commercial property for a single asset fund.
The two building office complex, 23 Graham Street, Milton, is costing $21 million – an 8.6 per cent initial passing yield.
ADCO Constructions and civil engineer Bielby Holdings Queensland are the occupiers.
ADCO is also the seller – for more than two decades, it has used one of the two improvements as its Queensland headquarters.
Milton is about three kilometres west of Brisbane’s CBD.
23 Graham Street
On 3743 square metres with Brisbane River views, 23 Graham St, also known as Graham Street Place, contains 3472 square metres and 73 car parks.
The weighted average lease expiry is 3.65 years.
It is also 5-star NABERS rated.
ADCO was represented by Knight Frank.
The buyer has earmarked it for a single asset fund – the Quanta Graham Street Office Trust – to run seven years aiming for an average 8.75pc, per annum, average net distribution after the first year (when 8.25pc is anticipated).
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