Sentinel Property Group is paying $103 million for a B-grade Brisbane CBD office.
Makerston House, in the city’s North Quarter, is Sentinel’s most valuable property purchase since forming in 2009.
It will be added to the Sentinel Regional Office Trust, alongside nine other investments worth about $350 million, in New South Wales, Northern Territory and Queensland.
Sentinel is acquiring the fully-leased Makerston House on a 7.85 per cent yield.
The 14-storey building at 30 Makerston Street contains 16,640 square metres of lettable area, 179 basement car parks, and occupies a 1796 sqm plot.
The vendor, Challenger Life Company, paid $33.6 million for Makerston House in 2006.
Challenger has been an active vendor of late.
Last week we reported it sold the Brisbane CBD’s NEXT Hotel, and a retail complex beside it, to Melbourne-based Salter Brothers for $150 million.
In mid-May, Challenger listed two retail assets it co-owns with Vicinity: Sydney’s Lennox Village and Geelong’s Corio Central. These properties are expected to sell for a total of more than $180 million.
In April, Challenger sold a Melbourne CBD office at 31 Queen Street to Boston-based AEW Capital Management, for more than $200 million.
Last October, it sold Fortius Funds Management Brisbane’s former Police Barracks site, now an office and retail complex, for more than $160 million.
Sentinel, meanwhile, spent $23.3 million late last year for a Bunnings-anchored homemaker centre in Heatherbrae, north of Newcastle. This investment has since been added to the Sentinel Homemaker Trust.