Quanta swoops on ex-Flight Centre HQ
Quanta Investment Funds has paid $39 million for a small 14 storey Brisbane office, also a former Flight Centre headquarters.
The deal for 157 Ann Street will reflect an 8.91 per cent net passing yield.
That would have been 3.47pc had the fund manager not prior to settlement secured a 2700 square metre lease to EFM Sports Performance and Recovery Centre, which commences next year.
With that rental agreement, occupancy rises to over 90pc and the Weighted Average Lease Expiry, to 6.6 years.
CBRE’s Adelaide O’Brien and Jack Morrison with Colliers’ Jason Lynch represented the vendor, Anton Capital.
Settlement occurred last month.
Anton breaks even
On behalf of Goldman Sachs, Anton paid $39m for 157 Ann Street in 2014; at the time the majority of the 6576 sqm lettable area was leased to the Brisbane City Council for nearly seven years.
That seller was the City of Brisbane Investment Corporation which outlaid $22m in 2009, and is said to have spent at least that again on a refurbishment.
Anton recently invested another $7.8m renovating, specifically, updating the lifts, foyer and end of trip facilities, which were also extended.
Some individual floors received new finishes too.
The façade was also upgraded, including with replacement ACP cladding panels.
Fund oversubscribed in 12 days
Fully leased, 157 Ann St should earn annual net income of c$3.4m (story continues below).
Floorplates are from 433 sqm, which Quanta expects will appeal to the sub-500 sqm fitted suite market, or as it calls it, “the city’s most active tenant base”.
There is also an undercover car park with 70 bays, ground floor retail and a 717 sqm podium tenancy. Part of the rooftop is activated too.
The site spreads 944 sqm.
Quanta will hold the property in a single asset fund, the Ann Street Trust, which closed last month oversubscribed.
“We are really pleased to bring a commercial asset of this calibre to our investors, with immediate upside via new tenant leasing, offering compelling distributions, an increase from initial valuation and a Weighted Average Lease Expiry of 6.6 yrs,” the fund manager’s founder and chief executive officer, Stacey Jones, said.
“Investor support was strong for this strategic opportunity, which was fully subscribed within 12 days, and will deliver a distribution of 8.15pc in its first year,” she added.
Second Quanta asset
Formerly a division of Sentinel Property Group, Quanta was created earlier this year.
In June, Ms Jones appointed ex-QIC and Mulpha executive Chris Corrigan as head of property investments.
Two months ago, it announced its maiden purchase, the Yamanto Village, near Ipswich, for $21.1m, from Gordon Corp.
With buildings covering 11pc of the 1.6ha site, that asset seeded an open-ended pooled fund, the Multi-Sector Income Trust, which is offering a 6.5pc annual return.
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