Dexus, Canada pension fund list c$300m 10 Eagle St

The Story Bridge and Eagle Street Pier view from the Dexus/CPP Investments office.

The day it announced a half share sale in Sydney’s Grosvenor Place for $925 million, Dexus with Canada Pension Plan Investment Board (CPP Investments) listed another office – in Brisbane.

Ten Eagle Street – which at 32 levels was the city’s tallest building upon completion in 1978 – should trade for c$300m according to sources.

The office was Brisbane’s tallest building when it was completed 42 years ago.

It would be the most valuable transaction of its type in the city since Deka Immobilien agreed to pay Abu Dhabi Investment Authority and Lendlease c$380m for 66 Eagle St late last year.

That asset over 23 storeys includes 32,000 square metres of area.

Like 10 Eagle St it was about nine per cent vacant.

Gold Tower, Golden Triangle

Dubbed The Gold Tower, 10 Eagle St contains 247 car parks and 27,826 sqm of A-grade, 5-star NABERS energy rated office area.

It occupies a 3477 sqm island site within Brisbane’s ‘Golden Triangle’.

Knight Frank’s Justin Bond and Savills’ Anthony Ott, the marketing agents, said the property offers immediate development upside by way of extending into the podium. The average floorplate is presently c950 sqm (story continues below).

Yesterday we reported Dexus Office Fund – which Dexus and CPP Investments control equally – offloaded an interest in the Harry Seidler designed Grosvenor Place to a co-owner, CIC.

Office deal could be Brisbane’s biggest this year

Mr Bond said 66 Eagle St was the city’s last major office transaction.

“As such [the asset he is marketing] is expected to attract strong pent-up demand from both offshore and domestic investors with the biggest drawcards being the prime Eagle St position, diverse income profile and future development upside.

“The significant infrastructure investment within the Brisbane CBD, along with long term population growth, stable governance and Australia’s safe haven status, will encourage further investment into [it]”.

Mr Ott added that $12.8 billion of development is underway within a kilometre of 10 Eagle St including the Cross River Rail and waterfront precinct.

“The building is already surrounded by significant amenity with popular shopping, entertaining and dining precincts…including Eagle Street Pier, Queen Street Mall and the Edward St retail hub, with public transport…the ferry, bus and train, also nearby”.

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Marc Pallisco

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

Marc Pallisco