Prime Super and advisor Whitehelm Capital have expanded their national office portfolio with the acquisition of Brisbane’s 313 Adelaide Street tower.
CBRE’s Tom Phipps, Bruce Baker and Flint Davidson negotiated the off-market deal on behalf of a global real estate investment manager, with Matthew Lawrence of CBRE’s Debt & Structured Finance team arranging the debt facility for Prime Super and Whitehelm.
Prime Super is a multi-industry superannuation fund with over 125,000 Australian members and circa $5 billion in funds under management.
Working with global infrastructure manager and investment adviser Whitehelm, the group has been expanding its property portfolio and recently finalised the $76 million purchase of the Citilink Business Centre in Brisbane’s Bowen Hills.
CBRE’s Mr Phipps said the Adelaide Street deal highlighted heightened onshore investor activity in Brisbane following the Queensland Government’s decision to introduce a foreign land tax surcharge.
“Investment volumes have remained strong, with domestic investors identifying that Brisbane offers good relative value,” Mr Phipps.
“Assets providing long term, government-backed income with fixed annual rental increases are particularly sought after in the current low growth environment, as highlighted by the 313 Adelaide Street transaction.”
The A-grade building has a net lettable area of 14,592sqm and a WALE of 5.8 years, underpinned by anchor tenant the Queensland Government’s Department of Transport and Main Roads.
The sale price translates to a core capitalisation rate of circa 5.75%.
“Prime Super and Whitehelm were attracted by the quality of the building’s services, amenities and large car park catering for the specific needs of the State Government tenant,” Mr Phipps said.
“The government lease covenant, recent major refurbishment and the fact that the building requires virtually no capital expenditure in the medium term were other key drawcards, as was the building’s strong leasing history.”
CBRE’s Mr Lawrence added; “The attractive debt facility secured reflects the institutional quality of the property and the calibre of the purchaser and investment manager.”
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.
