ESR, Goldman Sachs selling State Law Building
ESR and Goldman Sachs are understood to have sold a government-backed Brisbane CBD office to Hines.
The State Law Building at 50 Ann Street was listed 15 months ago.
The deal is speculated to be worth $210 million – a price which would reflect a 7.6 per cent net passing yield.
AsheMorgan and Stockland are believed to be amongst the under-bidders; the former recently spent $210m on nearby 310 Queen St.
A fortnight ago, Fortius paid LaSalle Investment Managers $210m for 307 Queen St while also this month, Cromwell outlaid $117.5m on the former Flight Centre headquarters (545 Queen St).
The city’s priciest office transaction so far this year was struck last month when Marquette Properties paid Canada Pension Plan Investment Board and Dexus $285m for 10 Eagle St, a tower which when it was constructed in 1978 was the city’s tallest.
Last week we reported ESR secured two pre-commitments allowing it to construct the first stage of an industrial park at Sydney’s Horsley Park (story continues below).
50 Ann Street, Brisbane
Rising 25 storeys, the State Law Building spreads a 2198 square metre plot at the north east corner of George St.
Occupied by the Department of Justice and Attorney General for four decades, it was renovated in 2020 at a cost of $10m.
The c25,519 sqm office area is considered A-grade.
Near the Magistrates, Supreme and Commonwealth courts and Queensland Police Headquarters, the Weighted Average Lease Expiry is less than four years.
CBRE’s Bruce Baker and Flint Davidson with JLL’s Seb Turnbull and Paul Noonan were the agents.
