Singapore’s AEP Investment Management Pte Ltd has purchased 41 George Street, Brisbane for $159.8 million, representing an 8.7% initial yield.
The office building was sold via an International Expressions of Interest campaign by Jason Lynch and James Barber of Colliers International, in conjunction with joint exclusive marketing agents Shaun Douglas and Ken Lucht of Chesterton International.
41 George Street comprises a 27 storey office tower set on a 2,811m² elevated corner site. The building is fully leased to the Queensland Government (AA+ credit rating) and currently holds a 4.5 stars NABERS rating, which a positive indicator of the building’s energy performance.
Mr Lynch said the highly competitive marketing campaign resulted in multiple bids from both offshore and onshore investors. “Major assets with WALE in excess of five years such as 41 George Street are very attractive as they will be rare for the next several years due to the current CBD market being so tightly held by long term institutional investors.
“The acquisition of 41 George Street was AEP’s first acquisition for the Basil Property Trust in Australia and further reinforces Colliers International’s cross-border investment capabilities to introduce new sources of offshore capital to Australia.
“The major drawcard for the AEP was the lease to the State of Queensland and the exceptional cash flow security until 2021.
“In addition to the cash flow security, the building also lends itself to a range of redevelopment and value add options. These include office refurbishment and adaptive reuse to hotel, student accommodation and residential apartments,” said Mr Lynch.
The property is situated within a highly strategic, growth corridor of the Brisbane CBD as it is positioned at the gateway to the proposed $3 billion “Queens Wharf” integrated casino, entertainment, hotel and residential precinct which is scheduled to open in 2022. The location is also within minutes’ walk from 1 William Street, the $800 million Government Headquarters, which is scheduled for completion in 2017.
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