The 10-storey Edison Exchange building in the heart of Brisbane’s “golden triangle” precinct will hit the market for the first time.
Telstra developed the 10-storey commercial building in 1963, and still owns the property to this day.
The property will be sold with a sale and leaseback arrangement, with a seven-year lease, plus a one-year option to Telstra.
The building offers 12,200sq m of gross floor area on the 1,675sq m site, and due to local planning is said to offer plenty of development potential.
Knight Frank’s Justin Bond, who has been appointed to broker the deal, says the property offers investors and developers an opportunity to secure a premium under-utilised site earmarked for major redevelopment.
“Particularly considering the highly attractive CBD position as well as the favourable town planning provisions,” Bond said.
“Effectively providing three-street frontages, the development potential of the site is significant.”
Bond said the city centre zoning allows for no maximum building height and offers a multitude of development potential including office, hotel, retail and residential.
While no price guide has been confirmed, thanks to steady demand in Brisbane’s commercial market, reports estimate the building could fetch prices north of $75 – $80 million.
Part of Brisbane’s history, the Elizabeth Street site has operated as a telephone exchange since the 1880s.
Up to 175 telephone services became available 24/7 in 1883 and it was manually operated until 1929 until switching over to an automated service.
Recent Brisbane CBD transactions include US property giant LaSalle’s $52.25 million purchase of 293 Queen Street in December.
Rockworth Capital Partners purchased the 17- storey office tower at 100 Edward Street for $60 million in August in an off-market deal.
Charter Hall acquired a high-profile development site on Queen Street Mall for $93.9 million last July.
Bond said he expects the 280 Elizabeth Street property to attract interest from both domestic and overseas buyers.
It will be sold via an expressions of interest campaign ending 28 February.