In its maiden deal outside of Victoria, Vantage Property Investments has purchased a warehouse converted office in Brisbane’s inner east Teneriffe.
The four storey, 4097 square metre Willoughby & Co Woolstores building at 130 Commercial Road is setting the fund manager back $28.65 million.
The seller, Centuria managed Primewest, paid $20.35m inclusive of costs in 2018.
Accent Brands, Mainbrace Constructions and the state government’s Screen Queensland are amongst the occupiers as is radio station Nova FM, which has signage rights.
Following the sale, Centuria maintains a major media tenant client – Southern Cross Austereo, which rents studios for Hit, Triple M and podcaster, LiSTNER, at a South Melbourne office, 101 Moray St, for which it paid Deague Group $205.1m last August.
Built to boundary
On 1710 sqm walking distance to Newstead ferry terminal, and surrounded by high density apartment complexes, the 130 Commercial Rd airspace has significant development upside; the woolstore is built to boundary.
The property is also a solid passive investment – just three per cent of the A-grade space is vacant. The Weighted Average Lease Expiry is 3.2 years.
“We were attracted to the point of difference in the character of the Willoughby and Co Woolstores and strongly believe in the occupier demand for assets of this nature,” Vantage managing director, Matt Spring, said.
“Vantage has some exciting plans…that we believe will add significant value for our investors, really harnessing the heritage attributes and identity of the building,” he added (story continues below).
Paul Henley, appointed the company’s director of Acquisitions and Investments last year after over a decade as head of commercial sales with Knight Frank’s Melbourne branch, adds that, like in that city, the Brisbane office market is experiencing a major flight to quality in vibrant locations.
“The Brisbane near-city Teneriffe Urban Renewal precinct is one of the most desirable areas within the riverfront suburb being amenity rich and within walking distance to the CBD,” he said.
The purchase comes 19 months since Charter Hall and QuadReal paid $65m for the Brisbane CBD office which once housed radio stations Triple M and Hit 105.
That seller, Kador Group, like Vantage, is Melbourne based.
The 130 Commercial Rd building is one of seven remaining woolstores in Teneriffe, about three kilometres from town.
It is also one of the only ones not to be converted for residential use, according to CBRE’s Jack Morrison, who represented Primewest with Adelaide O’Brien and Cushman & Wakefield’s Mike Walsh, Peter Court and Frederic Le Fanue.
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