HCK exits Brisbane after making a loss on $30 million office deal
Malaysia’s HCK has sold a Brisbane CBD office to a local investor for about $30 million.
The sale of 116 Adelaide Street (pictured top and below) comes six months after HCK banked $9.8 million offloading another investment in the city, 26 South Wharf, off-market.
HCK said the sales conclude a recycling program which has seen them take advantage of the rising Brisbane market.
It paid $34.5 million for 116 Adelaide Street in 2013 and $12.25 million on 26 South Wharf a year earlier.
Sale proceeds from the two Brisbane investments will be allocated to its core business of education in Malaysia.
Colliers International’s Sam Biggins and Tony Wang sold 116 Adelaide Street after picking up the listing from another agency, which was marketing it last year.
“We identified that the opportunity hadn’t been sufficiently exposed into the Asian market and hence included the property in our Australian Investment Showcase in May…before launching a local expressions of interest campaign,” Mr Biggins said.
“This resulted in competitive bidding and a total of seven offers, three of which were from offshore groups or local groups with offshore capital behind them.
“The end buyer was an Australian based investor who was attracted to the value-add prospects of the asset such as the core CBD location, opportunity for further asset enhancement initiatives, and the ability to reposition the asset for lease within the rising B-grade market.
“This transaction is a prime example of the strong demand for opportunities in Brisbane’s middle market office sector”.
The 16-storey building contains 6859 square metres of lettable office and retail area atop a three-level basement.
The vendors recently undertook a refurbishment to the foyer and office tenancies.
Mr Wang added that the Australian Investment Showcase roadshow is designed to take local properties directly to Asian buyers.
“As part of the roadshow we targeted 60 or so groups across Guangzhou, Hong Kong, Macau, Hanoi, Ho Chi Minh City and Singapore,” Mr Wang said. “We received strong interest from Singapore, Vietnam and Hong Kong at the close of bidding”.
