George Street tower provides $52m Brisbane opportunity for Marquette Properties

Real estate investment manager Marquette Properties has expanded its Brisbane portfolio with the $52 million acquisition of QIC’s 63 George Street office tower.

CBRE’s Peter Chapple, Jack Morrison and Bruce Baker negotiated the sale following a competitive Expressions of Interest campaign.

“Strategically located near Albert Street Cross River Rail, Queens Wharf, Parliament House and QUT, the asset has excellent demand drivers and ultimately attracted interest from multiple local, domestic and offshore groups that wanted to secure this prime CBD position,” Mr Chapple said.

It is a strategic acquisition for Marquette, which last year acquired the nearby 41 George Street office tower to undertake a Purpose-Built Student Accommodation (PBSA) project.

Development opportunities are also available at 63 George Street – a circa 10,586sqm office building, which is fully occupied by the State of Queensland until April 2029 with no further lease options.

Marquette Properties’ Managing Director Toby Lewis said, “We are thrilled to have acquired this great property on a prime corner of the Brisbane CBD and adjoining our live PBSA project in a joint venture with Dexus. Brisbane is our home, and we believe in our city. The Brisbane CBD needs more offices, hotels, apartments, PBSA and this property can help unlock these opportunities and assist with the city’s transformation in the lead up to the 2032 Olympics.” 

CBRE’s Mr Morrison said the building’s existing cash flow and holding income had been a draw for potential buyers, including those looking at both adaptive re-use plans and the longer-term prospects for Brisbane’s office market.

“The secure government-backed income was appealing, particularly as the fundamentals of the Brisbane office market continue to improve with limited new supply forecast for the next five years,” Mr Morrison said.

The George Street building occupies a large landholding of circa 1,750sqm, with a flexible PC1 (City Centre) zoning. This allows for several uses, including residential, hotel and commercial developments of up to 274 metres subject to the relevant planning approvals.