CBIC doubles money on Brisbane office

CIMB paid $9.14m for 262 Adelaide Street in late 2017.

City of Brisbane Investment Corporation has sold the CBD’s historic former Gordon & Gotch building after four years and a renovation.

The buyer, a Sydneysider in their first Queensland commercial property play, is paying $18.8 million – reflecting a 5.96 per cent passing yield.

The vendor outlaid $9.14m.

CBRE’s Jack Morrison, Peter Chapple and Andrew Adnam were the agents.

The sale comes 13 months since CBIC sold Yeerongpilly’s Southern Cross Regional Centre to Ascot Capital for $35.25m.

At the end of 2019, it offloaded a warehouse at 16 Industrial Avenue, Wacol, for $9.5m.

262 Adelaide Street

Rising six levels at 262 Adelaide Street, the c1926 building contains 2237 square metres of lettable area – all of which is leased.

The bulk (1824 sqm) is offices with occupants including recruitment firm Blackroc and architect Woods Bagot.

Greenstreat restaurant rents the ground floor retail (story continues below).

The site spreads 445 square metres, one holding east of Creek St, near Central Station and the Queen St Mall.

CBIC’s chief executive officer Kirsty Rourke said the 2019 restoration updated the technology and environmental credentials.

“CBIC was determined to preserve some of Brisbane’s CBD heritage, but we also needed to create spaces that suit how we work today,” she added.

“[The office] offers investors a major point of difference in providing the type of character office space that many businesses are seeking without the capital expenditure requirements of other similar assets”.

Mr Morrison added that two thirds of the building’s leases were signed or reset in the 12 months prior to the property being listed for sale in February.

“The building also offers some avenues for additional value creation, including the refurbishment and conversion of the lower ground retail space,” he added.

Elsewhere in the Brisbane CBD, Dmann Corporation is understood to be in advanced negotiations to buy 444 Queen St for just over $50m.

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Marc Pallisco

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