Brisbane,02 December 2015 – An Officeworks property in Woolloongabba has changed hands on a yield of 5.8%.
The CBRE Retail Investments team of Nick Willis, Michael Hedger and Justin Dowers negotiated the $8.2 million sale of the inner city Brisbane asset to a private Victorian investor.
The campaign was hotly contested, with 16 offers received – including three offshore bids from Taiwan, China and the United Arab Emirates.
“We are experiencing strong investor demand in the retail sector, from both local and offshore buyers,” Mr Willis said.
Officeworks has taken a 10-year leaseback on the site, with options until 2045.
“The buyer was attracted by the opportunity to secure a trophy asset with a highly secure monthly income stream, minimal management required and no specialty tenant leasing risk,” Mr Dowers said.
“The property is also positioned within a key growth precinct set to benefit from over $18 billion in infrastructure investment over the next 15 years.”
The asset is located at 176 Ipswich Road, approximately 3 kilometres south of the Brisbane CBD.
The property has a lettable area of circa 2,099sqm and is situated on a large site of 3,584sqm. The size of the site and its mixed use zoning provided for a strong underlying land value, Mr Willis noted.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.