The Public Trustee of Queensland and Abacus group are selling their office tower in Brisbane CBD’s Golden Triangle, with hopes it could bring more than $60 million.
Abacus Property Group hold 67 per cent of the tower, which it acquired for $23.5 million in 2016, and the Public Trustee holds the remaining 33 per cent.
The 444 Queen Street property is currently 76 per cent occupied, with the Public Trustee operating on seven levels.
This is the first time in its 56-year history the 21-level tower, known to be in need of refurbishment, has comes to the market.
Justin Bond and Blake Goddard of Knight Frank, in conjunction with Tom Phipps, Peter Chapple and Bruce Baker of CBRE, are managing the international expressions of interest campaign.
Bond said it was expected onshore and offshore investors would be interested in the tower.
“The property is one of Brisbane’s best value-add opportunities, offering a rare 100 per cent ownership along with a significant refurbishment and leasing program or perhaps a redevelopment,” Bond said.
“Repositioning the asset would bring it up to an institutional-grade asset, with opportunities under the current town planning guidelines including redevelopment into a hotel, build to rent, or a residential and commercial building up to 274m high.”
The tower has 13,968sq m of net lettable area on the 1708sq m CBD site.
A recent Knight Frank report found that Brisbane office market investment activity is rebuilding after a slow 2020.
Last year turnover totalled $607.6 million, representing the lowest total transaction level since 2008 and 2009, following the GFC.
This year AsheMorgan has splashed $210 million on 310 Ann Street in Brisbane’s biggest deal for more than a year, while $530 million of Brisbane office assets are under contract.
This includes “the Gold Tower” at 10 Eagle Street, snapped up by local private syndicator Marquette Properties.
Article Source: theurbandeveloper.com