LaSalle doubles down in Brisbane's Golden Triangle
LaSalle Investment Management (LaSalle) has increased its foothold in Brisbane’s Golden Triangle after acquiring a Queen Street office building anchored by the University of Queensland (UQ) for $52.25 million.
13 Dec 2018
LaSalle secured 293 Queen Street in an off-market deal on behalf of a separate mandate. LaSalle had previously purchased the adjoining 307 Queen Street tower in early 2017.
CBRE’s Tom Phipps, Flint Davidson and Bruce Baker negotiated both deals, with the latest acquisition giving LaSalle a combined Queen Street landholding of circa 2,500sqm.
“This is a strategic acquisition, which delivers LaSalle a large underlying site in the heart of Brisbane’s Golden Triangle,” Mr Phipps said.
One of Brisbane’s premier heritage office buildings, 293 Queen Street is anchored by the University of Queensland.
The building provides a net lettable area of 5,257sqm, with UQ occupying 100% of the ground floor retail component and 28% of the office space.
UQ’s three floors were extensively refurbished a year ago, to house the University’s Faculty of Business, Economics and Law.
The sale price translates to a passing yield of 4.04% with a fully leased market yield 6.7%.
CBRE negotiated the sale of 293 Queen Street on behalf of long-term owner Bloomberg Incorporation Limited, who has owned the building for almost 25 years. Mr Phipps said, “We were very mindful that Bloomberg Incorporation Limited characteristically hold their property assets long term, so it was challenging to persuade them to entertain the transaction.”
The deal boosts the tally of Brisbane CBD office sales this year to circa $3 billion.
“Global capital is now buying into the Brisbane recovery story, with this year’s tally of deals being the second highest on record,” Mr Phipps said.
“Institutional investors are actively scouring the market for opportunities, with domestic and offshore capital identifying that the Brisbane office sector is in a recovery phase and offering considerable value relative to the Sydney and Melbourne markets.”
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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 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
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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 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.