Billionaire buys Flight Centre, Virgin HQ
Billionaire Paul Lederer has agreed to buy the Southpoint office tower in Brisbane’s South Bank to seed a wholesale property fund he will retain a stake in.
Via his family office, LDR Capital, the executive is paying a headline $255 million for the 27,765 square metre A-grade building at 275 Grey Street, South Brisbane.
The result reflects a 7.8 per cent initial yield.
Following transaction adjustments, the (net) price is expected to be $214.8m.
The vendor, Hamburg based Union Investment Real Estate, paid the developer Anthony John Group $200.6m on a funds through basis in 2014.
Offshore divestment
Completed in 2016, the 21-level Grey St tower houses Flight Centre’s global headquarters; the travel giant pre-committed to the office when UIRE bought it.
Virgin Australia is also based there (continues below).
The asset sits above South Bank railway station and an integrated retail podium, not part of the deal.
Mr Lederer, the former Primo Smallgoods chief and Western Sydney Wanderers co-owner, will own a 25pc interest in the trust which will hold it.
The deal comes five months since we reported the executive, with a net worth speculated to circle $2 billion, acquired a campus style office in Canberra’s geographic centre.
Mirvac was that seller on behalf of the Mirvac Property Trust, for $305m.
CBRE’s Peter Chapple and Bruce Baker with Savills’ Ben Schubert and Seb Turnbull marketed 275 Grey St.
Subscribe to our newsletter at the bottom of this page.
