Melbourne based property investor and service station owner Nick Andrianakos has paid $85.2 million for a campus style office in Brisbane’s inner west Milton.
The off market deal for 19 Lang Parade is being struck on a passing yield of about 8 per cent.
The vendor, developer Franco Di Bartolomeo, initially tried to sell the asset in 2018.
Cushman & Wakefield’s Peter Court and Mike Walsh sealed the latest off market deal, in January.
Comprising two buildings with 13,800 square metres of area, the Milton office is tenanted to, amongst others, the Presbyterian Church of Queensland’s PresCare Community Care, recruiter Back2Work and MHPS Plant Services.
Mr Bartolomeo’s Dibcorp also occupies.
WALE and recovery align
The weighted average lease expiry (WALE) of 19 Lang Parade is 2.5 years.
Mr Court said the deal coincides with the steady recovery of the Milton leasing market “with a sharp decline in vacancy over the preceding 12 months”.
According to the Property Council of Australia’s most recent Office Market Report, Milton vacancy fell to 17.5 per cent in July, from 27.9 per cent the year earlier.
Milton, about two kilometres from the Brisbane CBD, comprises about a fifth of the city’s fringe office market.
Mr Court said an 8400 square metre lease at the John Oxley Centre contributed to the region’s improved office occupancy rate.
“We expect more capital to focus on the relative value Milton represents and the continued improvement in the mining and engineering sectors which the precinct is largely dominated by,” the broker added.
Mr Nikos, the founder of Milemaker Petroleum, controls a national portfolio of office investments.
In 2018 he paid Lendlease $101.35 million for Santos House in the Adelaide CBD.
Two years earlier the businessman sold his fuel business assets to Caltex for a total of $95 million – after locking in long-term leases for the properties, which he retains.