Fund managers trade Brisbane riverfront office

The Toowong site (marked) can contain 10 storey buildings.


Centuria is selling Exceed Capital a fully leased office with development upside on the banks of the Brisbane River, at Toowong.

Developed in 1989, the Coronation Drive office includes 5568 square metres.

The off-market deal for 555 Coronation Drive is speculated to be worth over $30 million – less than the December, 2023, book value of $36m which assumed a 7.5 per cent capitalisation rate.

End of trip facilities added as part of a 2020 refurbishment.

Developed in 1989 and renovated four years ago, it is fully leased; key tenants are Panthera Finance, which occupies 36pc, and Data #3, leasing 40pc and branding rights.

With 5568 square metres of 5.5-star NABERs rated space it also contains 175 car parks over 2.5 floors.

The office is renowned in leasing circles for its large (c2000 sqm) floorplates and water views; the weighted average lease expiry by income is 3.2 years.

On 3104 sqm opposite the Toowong CityCat terminal, surrounded by major buildings, it has significant development upside after that – up to 10 floors could be considered given the zoning.

Toowong is three kilometres south west of the CBD (story continues below).

Centuria bought 555 Coronation Drive in 2014 from Sentinel.

Trading between funds

Centuria paid Sentinel Property Group $33.4m for the Toowong office in 2014, holding it in the Office REIT (COF).

The Exceed fund it is earmarked for – the TO Property Trust – currently seeking backers, is expected to pay eight per cent annual returns monthly.

Income will be derived from rent and capital uplift; the yearly internal rate of return is projected at 18pc.

The Brisbane based buyer describes the investment as counter-cyclical being bought at “well below replacement cost and…book value”.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of