Sale Date: October 2021
The Property
Skytower Commercial Portfolio – 3,574sqm NLA and 78 car parks
The Challenge
Our client had never previously offered exclusivity and marketing on an appointment, although despite this, we were able to secure 6 months exclusive and ~$60k marketing. This was the result of our market-leading reputation and the development of a strong client relationship for two years.
The transaction represents the largest volumetric sale in the Brisbane CBD, with Skytower being the tallest building in Brisbane. The prestigious tower was the first building to reach Brisbane’s height limit of 274m.
Comprising a large volumetric asset, this became a challenging asset class within the Brisbane market. Also running the campaign throughout COVID raised further limitations for interstate and international investors to inspect.
Vacancy throughout the retail and office component resulted in our team creating a sale strategy to utilise 5-year leaseback across any vacancy.
The Process
Our team conducted an Expressions of Interest (EOI) campaign to attract potential buyers. This involved us utilising technology to maximise our marketing, through virtual meetings, online listings, native banners, eBrochures and extensive promotion across LinkedIn.
Our team collaborated to achieve a new volumetric record of 5.50%, despite challenging contract conditions which required all hands-on deck in terms of sales, office leasing, retail leasing, valuations etc to finalise the transaction.
The Results
- We achieved a cap rate of 5.50%, reflecting a new record for volumetric assets
- We received 130 enquiries, a sale price of $32,846,105 and cap rate of 5.50%
- This was an internal introduction, originally from our Office Leasing expert Bo Vievers
- The client was very pleased with the results of this sale. Due to the great client relationship management, the same team was recently appointed to the Skytower Residual Portfolio (>$200m total value)
Property Statistics
The property has a net lettable area (NLA) of 3,574sqm* and comprises 78 car parks. We secured an 11-year WALE, representing a circa net income of ~$1.9m p.a.
