Billbergia offloads Brisbane Skytower commercial component
A commercial portfolio within Brisbane Skytower, the city’s tallest building, has sold to a Sydney investor for $32.846 million.
The vendor was Billbergia which, with AMP Capital, completed the 88 storey tower at 222 Margaret Street in 2019.
Based on the annual net income, the deal reflects a 5.47 per cent yield.
Colliers’ Tom O’Driscoll, Tony Huan Wang and Nick Wedge were the agents.
Brisbane Skytower commercial portoflio
The offering includes ten tenancies across four asset classes:
- a car park with 78 bays;
- a Kids Club Early Learning childcare centre;
- offices, and
- retail
The Weighted Average Lease Expiry is 11.3 years.
Excluding the car park, there is 3574 square metres of area over three floors.
“The level of inquiry we received from this campaign was incredibly strong, leading to seven quality offers across all buyer profiles be it high net worth investors, syndicators and institutions,” Mr O’Driscoll said.
Brisbane Skytower, the first building to reach the city’s 274 metre height limit, contains 1137 apartments and a hotel.
“For several years post the [2007-2009] financial crisis, the site was nothing more than a 23 metre deep hole and accommodated flooding waters from Brisbane River and neighbouring properties,” Billbergia group managing director John Kinsella said.
“We could see the long-term potential for a quality mixed-use development and although the size of and scale of the project was daunting, subsequent years saw local construction company Hutchinson Builders pragmatically progress through construction,” he added.
“The result is a quality, popular, mixed-use development that offers unique commercial/retail suites and sky rising apartments to a variety of investment or lifestyle interests”.
Yesterday we reported PGIM paid Abacus Property Group and the Public Trustee of Queensland $54.5m for the nearby 444 Queen St office, with renovation plans.
Also this month, Cromwell outlaid $183.7m for another Brisbane CBD commercial investment, 100 Creek St; that vendor was ISPT.
Last month Oscars Hotels, led by brothers Bill and Mario Gravanis, spent c$50m for the Oakwood guesthouse beside the Story Bridge.
That seller was Mapletree.
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