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Corelogic RP Data Pty Ltd.

11/24/2021 | News release | Distributed by Public on 11/23/2021 20:44

Commercial Market Update - Brisbane Cityscope November 2021

The latest research from Brisbane Cityscope shows in the last three months sales figures have significantly increased. The last three months to the beginning of November 2021 recorded 14 sales for a total of $301.4 million, with $287.5 million for commercial, $8 million for commercial strata, $1.6 for retail and $4.3 million for retail strata.

In comparison, the last three months to the beginning of August 2021 recorded 23 sales for a total of $730.5 million, with $690.4 million for commercial, $7.7 million for commercial strata, $1.6 for retail, $4.3 million for retail strata and $100,000 for other .

The 12 months leading up to the beginning of November 2021 recorded 54 sales for a total of over $1.366 billion, more than $169.1 million lower than the recorded figure for the same time period the year before.

The table below shows sales recorded for the past eight updates of Brisbane Cityscope:

The most significant sales recorded this quarter were:

Following an expressions of interest campaign which closed November 3, 2020, the State Law Building on Ann Street in Brisbane has been sold for $205 million to HAPP 50 Ann Property Pty Ltd on behalf of Hines Asia Property Partners. Seb Turnbull, Paul Noonan and Kate Low of JLL negotiated the sale of the 25,519 sqm office building in conjunction with Flint Davidson, Bruce Baker and Stuart McCann of CBRE. The sale represented an initial yield of 7.75% on passing income of $15,887,770. The State Law Building was built in 1976 and is known as the 'Gotham Building' locally. It is fully leased The State of Queensland (Represented by the Department of Public Works) and a café.

Kuehne Real Estate Melbourne Pty Limited has purchased 299 Adelaide Street for $82.5 million. The sale of the 11-storey, 9,010 sqm office building was negotiated by Bruce Baker and Peter Chapple of CBRE and Seb Turnbull, Paul Noonan and Kate Low of JLL. The sale represented an initial yield of 5.30% on a passing income of $4,371,671 (net).

Properties currently listed for sale include:

  • Unit 2, Solace Financial House, 97 Creek Street. An 82 sqm unit on the ground floor (known as level 2). Scheduled for auction November 17, 2021; agent, McGees Property (Gavin Moore and Guy Stafford).
  • Unit 3, Oaks Casino Towers, 151 George Street. A 92 sqm retail unit on the ground floor to George Street. For sale with an asking price of $1,850,000; agent, RE/MAX City - Brisbane (Chris Esdale).
  • Unit 301, Waterside, 471 Adelaide Street. A 134 sqm ground floor unit fronting Adelaide Street. For sale with a reduced asking price of $1,225,000; agent, First National Commercial (George Koukides). The unit was advertised with a net income of $80,400 pa.

Properties currently under contract (conditional or unconditional) include:

  • 100 Creek Street, a 20,223 sqm, 25-storey office building with ground floor retail space. Under contract to Cromwell Direct Property Fund with settlement expected in November 2021; agents Knight Frank (Justin Bond and Ben Schubert) and CBRE (Flint Davidson, Bruce Baker and Peter Chapelle). The sale is subject to the Foreign Investment Review Board approval.
  • 307 Queen Street, a 19,670 sqm, 102m office building with ground floor retail space. Under contract for around $214,000,000 to interests associated with PGIM Real Estate and Fortius Funds Management; agent, Knight Frank Brisbane (Justin Bond).
  • The Brisbane Club Tower, a 21-storey, 10,836 sqm office building. The leasehold is under conditional contract to CHAB Office Trust for $31.5 million and the freehold interest is under conditional contract to CHAB Office Trust for $32 million, subject to a lease back of up to five years plus options. The transactions are expected to settle simultaneously during 2021.