LaSalle Investment Management (LaSalle) has increased its foothold in Brisbane’s Golden Triangle after acquiring a Queen Street office building anchored by the University of Queensland (UQ) for $52.25 million.
LaSalle secured 293 Queen Street in an off-market deal on behalf of a separate mandate. LaSalle had previously purchased the adjoining 307 Queen Street tower in early 2017.
“This is a strategic acquisition, which delivers LaSalle a large underlying site in the heart of Brisbane’s Golden Triangle,” Mr Phipps said.
One of Brisbane’s premier heritage office buildings, 293 Queen Street is anchored by the University of Queensland.
The building provides a net lettable area of 5,257sqm, with UQ occupying 100% of the ground floor retail component and 28% of the office space.
UQ’s three floors were extensively refurbished a year ago, to house the University’s Faculty of Business, Economics and Law.
The sale price translates to a passing yield of 4.04% with a fully leased market yield 6.7%.
CBRE negotiated the sale of 293 Queen Street on behalf of long-term owner Bloomberg Incorporation Limited, who has owned the building for almost 25 years. Mr Phipps said, “We were very mindful that Bloomberg Incorporation Limited characteristically hold their property assets long term, so it was challenging to persuade them to entertain the transaction.”
The deal boosts the tally of Brisbane CBD office sales this year to circa $3 billion.
“Global capital is now buying into the Brisbane recovery story, with this year’s tally of deals being the second highest on record,” Mr Phipps said.
“Institutional investors are actively scouring the market for opportunities, with domestic and offshore capital identifying that the Brisbane office sector is in a recovery phase and offering considerable value relative to the Sydney and Melbourne markets.”