AsheMorgan outlays $210m for Brisbane office

AsheMorgan is paying $210m for 310 Ann Street.

The Pidgeon family has sold a Brisbane CBD office after nine years, a renovation and extension.

The 20-level tower at 310 Ann St is trading to AsheMorgan for $210 million.

FA Pidgeon & Sons paid about $63m; at the time it was Suncorp’s base, rose 18 storeys and was dubbed the “wedding cake building”.

The refurbishment and subsequent management has been through subsidiary Cornerstone Properties.

310 Ann Street, Brisbane

Since 2015, Allianz and the state government have occupied 94 per cent of 310 Ann St’s 18,362 square metre A-grade area.

The Weighted Average Lease Expiry is 7.6 years.

CBRE’s Bruce Baker, Flint Davidson and Peter Chapple with JLL’s Seb Turnbull and Paul Noonan were the agents.

Their deal reflects a c5.5 per cent initial yield (story continues below).

The office was dubbed the wedding cake building 13 years ago. Source: Google Street View.

Priciest deal but not for long

The sale is also the priciest in the city since the first quarter of last year – but likely not for long, with speculation a partnership led by Marquette Properties is nearing settlement for 10 Eagle St, for $285m, offered by Dexus and Canada Pension Plan Investment Board.

“This prime-grade [310 Ann St] transaction offers significant guidance on market pricing and will provide further impetus for Brisbane’s commercial investment market,” Mr Baker said.

The property is adjacent to Central Station, one of four servicing the entire Queensland Rail network, the executive added.

The office also includes double-storey end-of-trip facilities.

Elsewhere in Brisbane, Charter Hall and Quad Real are paying Kador c$65m for the riverside 309 North Quay site once home to Triple M.

The former investor, with Abacus, also recently spent $63.5m on a nearby 19-floor investment.

Cromwell is reportedly in due diligence to buy 545 Queen St for less than $120m.

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Marc Pallisco

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

Marc Pallisco