Asset managers trade ex-Flight Centre HQ
Cromwell has sold a prominent underutilised Brisbane CBD office after nearly five years.
The asset manager is taking a haircut for 545 Queen Street – accepting $86.5 million.
It paid Axis Capital $117.5m in February, 2021.
The buyer this time is Corval.
The price is said to be 65 per cent below replacement cost.
The deal comes eight years since Corval paid Cromwell $89m for two offices at Bundall, on the Gold Coast.
That asset, the Gold Coast Corporate Centre, formerly known as the Bundall Corporate Centre, has since May been fully owned by the City of Gold Coast.
In July meanwhile, Corval acquired 11 of 13 Brisbane Technology Park buildings, at Eight Mile Plains, from Dexus – a $115.2m outlay, reflecting a 7.7pc net passing yield.
545 Queen Street
At a gateway to the city’s ‘Golden Triangle’, 545 Queen St, with branding rights to Tanda, contains 13,367 square metres of A-grade space.
Podium levels spread 2138 sqm. The tower floorspace averages 750 sqm.
With a 6-star NABERS Energy rating, government and ASX listed businesses, amongst them, Sonic Healthcare, are the main occupiers. There is also a ground floor café tenancy.
Vacancy is 24.7pc.
It was fully occupied with a weighted average lease expiry of 4.1 years when Axis sold it.
That owner also renovated the building, formerly Flight Centre’s headquarters.
The island site – exposed to Adelaide, Howard and Macrossan streets – spreads 2735 sqm zoned Principal Centre 2, marketed for its development upside, surrounded by taller towers.
CBRE’s Peter Chapple, Jack Morrison and Bruce Baker with Knight Frank’s Justin Bond and Blake Goddard listed the asset two months ago.
Cromwell held the property in the Direct Property Fund which is being wound up.
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