Hong Kong investor spends $94 million on Fortitude Valley office

A rooftop bar, Eleven, at 757 Ann Street, Fortitude Valley.

Investec has finalised the disposal of a major inner Brisbane office to a Hong Kong private investor.

The $94 million sale price for 757 Ann Street, Fortitude Valley, reflects a 6.6 per cent net passing yield.

Rising 11-levels, the six year old building was listed for public sale last October by Cushman & Wakefield’s Peter Court and Mike Walsh.

Investec paid $65.5 million for 757 Ann Street, Fortitude Valley, when it was new in 2014.

The Australian was the first to report that it found favour with an offshore buyer, in December – a month after the close of the expressions of interest campaign.

That deal is now finalised, according to the marketing agency Cushman & Wakefield’s Peter Court and Mike Walsh.

It is the purchaser’s first Australian commercial property investment, Mr Court added.

The campaign attracted multiple bids from a mix of local and offshore funds and institutions as well as high net worth families and syndicates, the broker said.

The result “solidifies Brisbane’s standing as a desired destination for global capita”.

It also came in 11 per cent over the ($85 million) book value.

Configured with 9422 square metres of A-grade office area – fully leased and with a weighted average lease expiry of about 4.5 years – 757 Ann Street includes 48 car parks.

Parts of the ground floor are configured with retail while the rooftop contains bar Eleven.

The commercial building’s tenant list includes Swiss-Swedish multinational robotics and technology giant ABB – which has naming rights – and Domain Group.

It occupies a 1219 sqm plot at the south east corner of Morgan Street.

Fortitude Valley is about two kilometres from Brisbane City Hall.

This asset captures postcard views of the CBD as well as Story Bridge and Brisbane River.

Investec paid $65.5 million for 757 Ann Street in 2014.

Its disposal late last year came at the same time Deutsche Asset & Wealth Management sold 313 Adelaide Street, in the Brisbane CBD’s esteemed ‘golden triangle’, to Prime Super and Whitehelm Capital for $55 million – a 5.75 per cent yield.

The A-grade commercial building earns annual net rent of $6.21 million.
The Ann Street office (outlined) captures views of Brisbane’s CBD and Story Bridge.

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Marc Pallisco

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

Marc Pallisco