Sentinel snares Brisbane office for new fund
Sentinel Property Group has swooped on a Fortitude Valley investment for a new fund targeting offices in Brisbane Olympic Games precincts.
It locked in a noteworthy deal, securing Green Square South at 505 St Pauls Terrace for c$140 million.
Vendor, AXA Investment Managers on behalf of the South Korea’s Teachers Pension Fund, outlaid $205.5m in 2019; it was the union’s maiden Brisbane asset.
With c17,618 square metres over five floors – some levels with large c4500 sqm floorplates – the office is fully occupied by the Brisbane City Council, but the lease expiry is short – 2027.
Sentinel plans to renovate the already contemporary Green South Square to retain the government tenant, or attract new ones.
The deal comes six months since we reported the Warren Ebert led group paid the RACQ $72m – a high 9.34 per cent yield – for an office it part occupies as its headquarters, 60 Edward St, in the CBD.
Asset to seed fund
Sentinel is buying Green Square South for a $73m to 2024 book value.
On 6400 sqm zoned Mixed Use 1, with 355 car parks, it will be slotted into a newly announced office fund, the Sentinel Games Precinct Trust, which is aiming for an initial 8.5 per cent annual distribution.
The area’s RNA showgrounds is set to become the athlete’s village for the 2032 games.
It will also accommodate a c20,000 seat stadium.
Across town at West End, the state government in 2022 paid Visy $165m for a seven hectare riverfront block which, combined with the neighbouring Parmalat factory it also owns, will become the International Broadcast Centre.
Colliers’ Adam Woodward marketed Green Square South.
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