Kyko Group has snared Brisbane’s 201 Charlotte Street office tower for $126,700,000 amid heightened interest in Brisbane CBD investment opportunities.
Fortius Funds Management and two private funds managed by BlackRock recently listed the tower for sale through CBRE’s Flint Davidson and Tom Phipps in conjunction with Justin Bond and Ben McGrath of Knight Frank.
Mr Davidson said the Expressions of Interest campaign had attracted five bids from local groups and three international offers, underpinned by the property’s strong tenancy profile, core CBD location and the current strong investor focus on Brisbane investment opportunities.
“When we look around the country, Brisbane is one of the most heavily traded markets in 2019 with investors finding favour in higher returns and improving fundamentals. We anticipate similar transaction volumes in the second and third quarter,” Mr Davidson said.
It is a strategic acquisition for Kyko, an Australian property development and investment group with an active approach to asset management.
The A-grade Charlotte Street tower has a net lettable area of 13,291sq m, with major tenants including Anglo American Metallurgical Coal, the world’s 3rd largest metallurgical coal mining company.
The building is currently 87% occupied and offers a WALE of 5 years following Anglo’s recent recommitment to the property until 2028. The sale price translates to an initial yield of 5.94%.
Mr Phipps noted that Brisbane’s strong underlying economic fundamentals had been one of the key draw cards for prospective purchasers.
“With the largest decline in vacancy of any major Australian CBD in the past 12 months, Brisbane is experiencing a dynamic economic recovery aided by forecasts that growth in Queensland’s Gross State Product will outpace the rest of the nation at 3.4% over the next five years,” Mr Phipps said.
“This, coupled with significant yield spreads to Sydney and Melbourne, is attracting buyers to Brisbane as a value proposition with genuine growth prospects.”
Mr Phipps added that the transforming location around 201 Charlotte Street had been another attraction for buyers, with the tower set to directly benefit from city shaping projects including Cross River Rail, the Waterfront Precinct and Queen’s Wharf Integrated Resort and Casino.
“These projects are set to vastly improve the immediate area and underpin future rental growth the across the office, retail and carparking components at 201 Charlotte Street,” Mr Phipps said.
“The building has also benefitted from recent refurbishments totalling more than $5 million, which have established 201 Charlotte Street as a lifestyle hub, offering childcare facilities, an F45 gym, café, end of trip facilities and a valet car service.”
Fortius Funds Management and two private funds managed by BlackRock recently listed the tower for sale through CBRE’s Flint Davidson and Tom Phipps in conjunction with Justin Bond and Ben McGrath of Knight Frank.
Mr Davidson said the Expressions of Interest campaign had attracted five bids from local groups and three international offers, underpinned by the property’s strong tenancy profile, core CBD location and the current strong investor focus on Brisbane investment opportunities.
“When we look around the country, Brisbane is one of the most heavily traded markets in 2019 with investors finding favour in higher returns and improving fundamentals. We anticipate similar transaction volumes in the second and third quarter,” Mr Davidson said.
It is a strategic acquisition for Kyko, an Australian property development and investment group with an active approach to asset management.
The A-grade Charlotte Street tower has a net lettable area of 13,291sq m, with major tenants including Anglo American Metallurgical Coal, the world’s 3rd largest metallurgical coal mining company.
The building is currently 87% occupied and offers a WALE of 5 years following Anglo’s recent recommitment to the property until 2028. The sale price translates to an initial yield of 5.94%.
Mr Phipps noted that Brisbane’s strong underlying economic fundamentals had been one of the key draw cards for prospective purchasers.
“With the largest decline in vacancy of any major Australian CBD in the past 12 months, Brisbane is experiencing a dynamic economic recovery aided by forecasts that growth in Queensland’s Gross State Product will outpace the rest of the nation at 3.4% over the next five years,” Mr Phipps said.
“This, coupled with significant yield spreads to Sydney and Melbourne, is attracting buyers to Brisbane as a value proposition with genuine growth prospects.”
Mr Phipps added that the transforming location around 201 Charlotte Street had been another attraction for buyers, with the tower set to directly benefit from city shaping projects including Cross River Rail, the Waterfront Precinct and Queen’s Wharf Integrated Resort and Casino.
“These projects are set to vastly improve the immediate area and underpin future rental growth the across the office, retail and carparking components at 201 Charlotte Street,” Mr Phipps said.
“The building has also benefitted from recent refurbishments totalling more than $5 million, which have established 201 Charlotte Street as a lifestyle hub, offering childcare facilities, an F45 gym, café, end of trip facilities and a valet car service.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
