Shayher has acquired the asset for $395,000,000 following an International Expressions of Interest campaign. The asset is currently 79% leased with a WALE of 2.7 years (by income). Major tenants include Commonwealth of Australia, National Australia Bank, Citibank, Dimension Data, Secure Parking, JB Hifi, Vodafone and Ramsay Health Care.
The 3,692sqm double corner site enjoys three street frontages to Queen, Albert & Elizabeth Streets. The asset comprises a total 31,708sqm NLA incorporating 7,283sqm retail and 24,425sqm office spread across a three-level podium and two towers with basement parking for 207 bays.
Colliers International’s National Director - Capital Markets, Jason Lynch said “The significance of the opportunity generated deep interest from both domestic and offshore capital. On a global basis, Australia, particularly Brisbane, is attractive on a comparative return basis. Investors were attracted to the strong and diverse mix of covenants underpinned by the Commonwealth of Australia as the major tenant occupying the entirety of the 140 Elizabeth Street office tower. The landmark sale represents the first time that the asset has ever changed hands in its current format.”
Colliers International’s Head of Retail Investments, Lachlan MacGillivray said “Investors are continuing to focus their attention on high quality assets with outstanding fundamentals and Q&A is reflective of this. The prime location, in particular the exposure to Australia’s busiest pedestrian mall, Queen St Mall, gave bidders significant comfort in the future remixing potential of the retail component of the asset. Situated at the epicentre of the Brisbane CBD, Q&A is perfectly positioned to leverage the $12billion of city shaping infrastructure projects planned for Brisbane.”
JLL’s Senior Director of Retail Investments – Australia, Jacob Swan said that the campaign generated significant interest and investors were attracted to the rarity of the opportunity, being only the 10th transaction on the Queen Street Mall in the past decade. “The opportunity captured the interest of a variety of different investment mandates, given the significance of the location and the various value-add strategies available. Strong economic market fundamentals future proofs the investment for years to come.”
JLL’s Head of Capital Markets, QLD, Seb Turnbull added “Strong market drivers including positive effective office rental growth, increased small occupier demand and moderate office supply is continuing to attract capital to Brisbane as an alternative to the southern markets. Brisbane has a compelling value proposition with an average 81 basis point yield discount to Sydney and Melbourne. In addition to the positive office market fundamentals outlined above, Q&A benefits from over 130 metres of ultra-prime retail frontage, with over 500,000 pedestrians walking past the site every week.”