Quintessential snaps up Fortitude Valley office
Quintessential has settled on its purchase of a Fortitude Valley office from ISPT’s Core Fund.
Green Square North at 515 St Paul’s Terrace cost $174.85 million – an 8.5 per cent fully let initial yield.
The result is also 53pc below replacement cost ($370m), the group said, as it calls for wholesale investors for a single asset fund which will hold it.
CBRE’s Peter Chapple and Bruce Baker with JLL’s Seb Turnbull and Paul Noonan were the agents.
The deal comes four months since we reported Sentinel Property Group acquired the Green Square South tower, for $132m.
That seller, AXA Investment Managers on behalf of the South Korea’s Teachers Fund, paid ISPT $205.5m in 2019.
St Pauls Terrace North
Over 12 floors, St Paul’s Terrace North contains 24,179 square metres of A-grade space – the bulk (79pc) leased to government tenants.
The average rent is 14-22pc below market, according to Quintessential.
There are also 166 basement car parks.
The site spreads 3322 sqm.
Quintessential is promoting 6-7pc annual returns paid monthly and an internal rate of return between 15-19pc
The deal comes 13 months since Quintessential bought 240 Queen Street in Brisbane’s CBD from Brookfield for $250m – another price, it said, below replacement cost.
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