Axis Capital has sold a Brisbane CBD office to a Cromwell fund for $117.5 million – a price which reflects a 5.9 per cent yield.
The vendor paid GPT $70 million for 545 Queen Street in 2017.
At the time the key tenant, Flight Centre, was set to vacate about 70 per cent.
Axis then spent six months refurbishing and repositioning it as an A-grade investment, before embarking on a leasing campaign – filling all the space to occupiers including CSC International, McPherson Group and Sonic Healthcare.
More than 90pc of the income now comes from the government, listed or multinational groups (story continues below).
The new tenants are paying gross rents between $600-$625 per sqm, per annum.
The asset’s Weighted Average Lease Expiry is just over four years.
Cromwell will hold the 10-storey, 13,000 sqm building in its Direct Property Fund.