Dexus and Canada Pension Plan Investment Board have sold Brisbane’s 10 Eagle Street for $285 million.
The pair owned equal stakes.
Marquette Properties – representing more than 150 families – is the buyer.
The deal is the priciest for an office in the Queensland capital since early last year, when Deka Immobilien paid Abu Dhabi Investment Authority and Lendlease $380m for 66 Eagle St.
Last week AsheMorgan acquired 310 Ann St from the Pidgeon family for $210m – a value which reflected a 5.5 per cent yield.
10 Eagle St
The A-grade Eagle St office – at 34 levels, Brisbane’s tallest tower upon completion in 1978, contains 27,826 square metres of area.
As at December, it was eight per cent vacant.
The Weighted Average Lease Expiry is just under three years; major tenants include Accenture and Wilson Parking (story continues below).
On a 3477 sqm island site in the city’s ‘Golden Triangle’, the building is dubbed locally as The Gold Tower.
Knight Frank’s Justin Bond and Savills’ Anthony Ott brokered the deal on a c5.3pc passing yield.
Gold Tower now owned by more than 150 families: Marquette
Dexus, which held the asset for its Dexus Office Partnership, in which it controls 50pc, will use net proceeds to repay debt.
“This transaction continues our asset recycling strategy, realising value for both Dexus and our Dexus Office Partner while reducing our exposure to the Brisbane market,” Dexus chief investment officer, Ross Du Vernet, said.
“It also provides us with an excellent opportunity to focus our leasing, asset management and development capabilities on advancing our city-shaping development project at Waterfront Brisbane,” he added.
Marquette, a manager which value-adds, is Brisbane based.
Its managing director Toby Lewis said “despite the ongoing long-term uncertainty associated with the COVID-19 pandemic, we have enabled more than 150 Australian families to invest in 10 Eagle St and look forward to delivering strong returns as a Brisbane continues to grow as a city and a city to invest in”.