Postscript: PGA Properties paid $53.5m for this investment in March, 2020.
RG Property is selling an office in the Brisbane CBD’s financial precinct – dubbed the Golden Triangle.
More than $50 million is expected for the 14-level building at 410 Queen Street.
RG Property acquired the investment in 2011, later undertaking a major capex work program worth $5.5 million.
With 5704 square metres of lettable area and 46 car parks, the office now boasts a 5-star NABERS rating.
“The asset occupies an irreplaceable corner position which benefits from exposure to three streets (Queen, Wharf and Eagle streets) and boasts exceptional natural light to all tenancies with protected views along the Brisbane River and Story Bridge,” the brokers said.
Mr Walsh added that the building has experienced “only minimal” vacancies throughout its lifecycle and outperformed the broader market from a vacancy and income growth perspective.
“The property also provides a significant opportunity for investors to extract further short-term value,” the agent added.
Of the disposal, RG Property’s chief executive officer Rhett Williams said the investment had come towards the end of its desired eight year cycle.
“We remain acquisitive and are looking to re-allocate capital towards other value add opportunities within the Brisbane market, in addition to other projects we have around the country,” Mr Williams said.
Meanwhile, Brisbane investment levels hit heights not seen since the GFC
Cushman & Wakefield Research said that for the year 2018/19 financial year, investment into the Brisbane office market totalled $2.8 billion – the highest annual volume since the Global Financial Crisis (2007).
Mr Chapple said “the fundamentals of the broader CBD office market in Brisbane are also increasingly robust, with the vacancy rates continuing to contract”.
“The Brisbane leasing market is benefiting from continued strong population growth which is driving billions of dollars in infrastructure investment in and around the Brisbane CBD”.
The CBRE broker added that he expects high net worth local and offshore investors to consider 410 Queen Street.
Some Brisbane CBD deals we’ve reported about recently include:
- Forza Capital, which is based in Melbourne, selling 420 George Street to Dymocks Properties for $42.1 million in July;
- Firmus Capital paying Telstra $57 million for the Edison Telephone Exchange in June, Also in the Golden Triangle, the 1670 sqm block has development potential;
- Sentinel acquiring the B-grade Makerston House (pictured, below) from Challenger Life Company, for $103 million;
- Kyko Group picking up 201 Charlotte Street for $126.7 million;
- Melbourne-based Perri Projects selling 179 North Quay for $52.6 million;
- QIC Global Real Estate banking $275 million for 61 Mary Street last November.
A couple of major city hotel deals have also been sealed in the Brisbane CBD this year including the Next Hotel, which Salter Brothers picked up for $150 million with an adjoining retail complex in May – as we reported here.
Last November, we reported that Legend Land, an associate of Worldwide Land paid about $100 million for the ibis Styles at 40 Elizabeth Street.
Fortius Funds Management paid Challenger more than $160 million for a major mixed use asset built into former police barracks at 60 Petrie Street – as we reported here.