Arcana swoops on B-grade city office
Arcana Capital has bought a Brisbane CBD office for about the same price it sold for 20 years ago.
At the time fully occupied by the Queensland University of Technology on a new seven year lease, but nowadays part vacant, with a weighted average lease expiry of less than a year, 126 Margaret Street cost $27.43 million.
The seller, Capital Property Fund, on behalf of an investor, outlaid $29.9m in late 2016.
That vendor, Investec, paid receivers for Record Funds Management $19.5m in 2011.
Record spent $25.7m for it in 2006.
126 Margaret Street
The Margaret St office contains 5737 square metres of B-grade space over 14 floors (continues below).
9B classified, it could again make way for a school campus.
There are also 48 basement car parks.
When the asset was listed last year the net passing annual income was $2.155m.
Despite development upside – on 901 sqm zoned Principal Centre 2 and surrounded by taller buildings, about 150 metres from Queens Wharf – and its potential to yield student accommodation, near QUT’s main campus, Arcana is planning a refurbishment and reposition.
“[The office is] set to further benefit from the forthcoming Cross River Rail Albert Street train station,” CBRE marketing agents, Jack Morrison, Nick Wedge and Adelaide O’Brien, said.
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