Property investment, asset management and development firm RG Property has expanded its Brisbane portfolio with the $15.8 million acquisition of an historic Fortitude Valley office complex.
CBRE’s Jack Morrison and Peter Chapple negotiated the sale of the 37 Kennigo Street property in conjunction with Cushman & Wakefield’s Peter Court and Mike Walsh
RG Property CEO Rhett Williams said; “We’re excited by the medium and long term potential of this asset as the Fortitude Valley region continues to go from strength to strength. Securing this large landholding puts us and our investors in a strong position to capitalise on the continued growth in the Fortitude Valley market, which is emerging as a natural extension of the Brisbane CBD.”
The deal represents the latest acquisition for RG Property, a group with a proven track record in active asst management.
Last year, RG sold Brisbane’s 410 Queen Street office building for $53.5m after acquiring the asset in 2011 for $28.8m.
Acquiring 37 Kennigo Street delivers the group an award-winning complex comprising three, character buildings with adaptive redevelopment and repositioning potential. The complex occupies a large 5,094sqm inner-city land holding offering dual street frontages.
CBRE’s Mr Morrison noted; “Assets such as 37 Kennigo Street, which offer a level of uniqueness and character, are in high demand as buyers seek to add a mix of asset types to their portfolios. This underpinned interest in the sale campaign, given the current tenant and buyer interest in well-appointed heritage assets.”
Cushman & Wakefield’s Peter Court said the sale followed an uptick in buyer enquiry from a range of syndicates and investment clubs.
“We saw an increase in demand towards the back end of 2020, a theme that has increased in early 2021 and looks set to continue as buyers view the current market conditions with more certainty,” Mr Court said.
Originally constructed in 1916 as the Keating’s Bread Factory, the complex is partially heritage listed and has been redeveloped and refurbished in 2008, 2017 and 2020.
The three buildings provide circa 2,955sqm of high quality, modern office space in addition to 46 car bays.
The major tenant is Hassell Architects alongside a number of smaller occupiers, including software companies, marketing firms and financial services companies – providing a diversified income stream with a staggered lease expiry profile over the next three years.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
