A prominent office tower in Brisbane’s legal and government precinct has gone on the market with price expectations in excess of $300 million.
The financial services giant JP Morgan has moved quickly to offload their asset at 53 Albert Street, which has been on its books since early 2019 after acquiring it for $250 million from Challenger.
Challenger bought the prime-grade building in 2014 for $200 million from a syndicate operated by local accountant Earl Larmar.
The Nettletontribe-designed building occupies a 2300sq m corner site fronting Albert and Margaret streets and was completed in 2009 by Hutchinson Builders for $70 million.
Before its redevelopment, the site was a nine-level, 580-space car park.
The 19,000sq m building now spans 22 storeys with a car park in its lower levels.
The building features a central core, 1470 sq m, column-free floorplates and views towards the Brisbane River and Botanic Gardens.
It is fully occupied by the Queensland government on a lease running through to January 2028.
CBRE’s Bruce Baker, Flint Davidson and Stuart McCann have been appointed to manage the sales campaign.
Baker said that limited opportunities around the country to acquire 100 per cent stakes in prime-grade CBD office towers would mean strong interest from onshore and offshore capital.
“The asset has been occupied since inception by the state government, which recently re-committed to an additional six-year term, highlighting the tenant’s strong commitment to the strategic asset and location,” he said.
The tower is 450m from Parliament House and 1 William Street, and opposite the new Albert Street station being built as part of the Cross River Rail network.
The building has a 5.5 Star NABERS Energy Rating and a 4.5 NABERS Water Rating.
During the pandemic, investment has tilted towards sustainable buildings with a huge wave of capital seeking assets in the Asia Pacific and Australia providing quality and assurance for tenants.
According to Knight Frank, offices with NABERS energy ratings of up to 4.5 stars are worth an average of 8 per cent more than unrated buildings on a per square metre basis while those rated between five and six stars have attracted an 18 per cent premium in recent years.
Brisbane’s office market was among Australia’s most active last year.
The biggest transaction was the $285 million Marquette Properties paid for 10 Eagle Street while Charter Hall Prime Office Fund paid $264 million for 50 per cent of 275 George Street and AsheMorgan bought 310 Ann for $210 million.
Article Source: www.theurbandeveloper.com