Local property platform Quanta Investment Funds has bought a recently refurbished office block in Brisbane’s CBD from Anton Real Estate Partners for $39 million, the latest in a run of middle-market moves in the city.
New lease agreements at 157 Ann Street will take the 14-storey office tower’s occupancy from 46.6 per cent to over 90 per cent. Those agreements – including a 2700 sq m deal with EMF Sports Performance and Recovery Centre, which plans to launch its Brisbane flagship health centre in 2023 – will take the property’s passing yield from 3.47 per cent to 8.91 per cent.
Quanta chief executive Stacey Jones said investors have shown strong support, with the investment offer backing the property fully subscribed within 12 days. The investment vehicle is expected to deliver a distribution of 8.15 per cent in its first year.
The 6576 square-metre Ann Street tower, between Central Station and King George Square Interchange, was brokered by CBRE’s Adelaide O’Brien and Jack Morrison, along with Colliers’ Jason Lynch.
Ms O’Brien said the Ann Street sale was one of a series of recent middle-market trades in Brisbane, testament to appetite for commercial property in the sub-$100-million sector.
“While market fundamentals have become more challenging over the course of the year, groups with conviction around the occupier market are proving to be rewarded,” she said.
In July, fund manager Aviator Capital bought an office tower in central Brisbane’s North Quarter precinct from Kyko Group for about $50 million In the same month, the Roberts-family-backed RF Corval sold a suburban office block for $46.5 million.
Adding to the Brisbane’s middle-market deal flow, interests associated with Bloomberg Incorporation, a private investment platform that owns Brisbane’s Riparian Plaza, snapped up another mixed-use property in the inner city for about $55 million.
Article source: www.afr.com
from Queensland Property Investor https://ift.tt/509i2xq
via IFTTT
