New Farm office set for refurb after $6.4m sale

The 1046 square metre site is two kilometres east of Brisbane.

A New Farm office and retail investment on the precinct’s biggest block after Merthyr Village Shopping Centre across the road has sold for $6.4 million.

The incoming owner, a local, intends to refurbish and reposition 92 Merthyr Road, which has a Weighted Average Lease Expiry by income of just over two years.

The deal reflects a 5.73 per cent initial yield or 5.4 per cent on market rents.

It values every square metre of net lettable area at $7223 (the double storey asset additionally includes 79 sqm of storage and 20 car parks, some within a basement).

The land, zoned District Centre in one of Brisbane’s most exclusive suburbs, is worth $6119 per sqm.

The holding has 40 metre frontage to both Hickey Street and Adeline Lane (story continues below).

Westpac Bank is the retail anchor.

JLL Metro Sales & Investment’s Elliott O’Shea and Sam Byrne said 92 Merthyr Rd is opposite Coles New Farm which is regarded one of that retailer’s best performing Australian stores.

“With multiple offers received, groups competitively bid for the site which saw the successful purchaser secure the property on cash unconditional terms,” the agents added.

The suburb is two kilometres east of the city.

The site contains a double storey office and retail investment with 886 square metres of net lettable area.
The asset includes basement car parking.

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Marc Pallisco

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

Marc Pallisco