Marquette, Mercer snap up Brisbane offices

Marquette and Lendlease have purchased 12 Creek Street, Brisbane.

Major fund managers have outlaid over $540 million for two Brisbane CBD offices.

In the biggest deal, Marquette Properties, backed by Lendlease’s $1.5 billion Real Estate Partners 4, has purchased 12 Creek Street, Brisbane, from Dexus and its managed Wholesale Property Fund.

Worth a headline price of $420m, the transaction was speculated last year as being to Arrow Capital Partners, backed by Starwood Capital, which is believed to have been an underbidder.

Over 32 levels in the city’s ‘golden triangle’, the office, also known as Comalco Place, contains 38,746 square metres of A-grade area leased to, amongst other groups, AFSA, BDO Services and Moray & Agnew.

The Annex – a boutique commercial building with a rooftop terrace – was added last year.

CBRE’s Bruce Baker and Flint Davidson with Knight Frank’s Justin Bond and Paul Roberts were the marketing agents.

Upon settlement in next month, Marquette will hold a 51 per cent interest.

The deal comes 10 months since Marquette paid Dexus and the Canada Pension Plan Investment Board $285m for the ‘Gold Tower’ at nearby 10 Eagle St.

Proceeds tipped into development pipeline: Dexus

After transaction costs, Dexus and DWPF, which held an equal stake, will net a total of about $391m from 12 Creek St.

“This divestment enables us to recycle capital into our high returning development pipeline, with our Waterfront Brisbane development expected to commence shortly given leasing momentum,” Dexus chief executive officer Ross Du Vernet said (story continues below).

Mercer has purchased 179 Turbot Street, Brisbane.

“We are excited about the opportunity to focus our leasing, asset management and development efforts on this new development project,” he added.

Mercer buys 179 Turbot Street

Meanwhile, Mercer, on behalf of the Mercer Australia Property Fund, is paying Malaysia pension fund Kumpulan Wang Persaraan, or KWAP, c$151m for 179 Turbot St (pictured, top), nearby.

The deal reflects a loss for the vendor which paid $172m in 2013.

The 27 level building contains 24,904 sqm of area – half of which is vacant – and 185 car parks.

BUPA is the anchor, on a lease expiring in September, 2025.

The site spreads 1234 sqm.

Minter Ellison assisted on both campaigns, representing Dexus and Mercer/REP4.

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Marc Pallisco

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