Private Capital Swoops in on Brisbane Metropolitan Trophy

A Sydney-based private investor has acquired one of Brisbane’s best quality metropolitan office assets in Hamilton for $46.5 million. 

365 Macarthur Avenue is fully leased to one of the world's leading integrated energy companies, providing a WALE of 9.5 years. Investors were drawn to the building which is located at the heart of the priority development area of Northshore Hamilton, a riverfront precinct which will accommodate the main athletes' village for the Brisbane 2032 Olympic and Paralympic Games.  

The building was originally constructed in 2016 for the multinational energy company, committing for an initial term of 15 years. The expiry in 2031 aligns with the Northshore area’s redevelopment, ahead of the Brisbane Olympics. 

The sale price represents a capitalisation rate of 5.3%.  

CBRE agents Jack Morrison and Adelaide O’Brien brokered the deal for vendor RF Corval alongside Peter Court, Mike Walsh and Fred Le Fanue from Cushman and Wakefield.  

Offering  a blue-chip covenant and CPI increases, Jack Morrison said it was easy to see why the demand for this asset was so high, as it provided an attractive hedge against inflation.  

The deal precedes a number of transactions in the Brisbane market which are now unconditional following a flurry of activity in the first half of 2022. 

“We are expecting to announce a number of transactions in the Brisbane office market below $100 million in the coming months, which will continue to demonstrate that quality property in Brisbane is still highly contested,” Mr Morrison said.  

The Hamilton building at 365 Macarthur Avenue is an A-grade asset offering a net lettable area of 5,040sqm, a 1:22sqm car parking ratio and natural light on all areas of the 1,650sqm floor plates.  

“As well as the high-quality nature of the asset, the fact there were no outstanding incentives running through the cashflow was a rare and appealing point for investors seeking clean cash flow in an emerging precinct,” Cushman & Wakefield’s Mr Court said.   

RF Corval’s Head of Transactions Oliver Picone noted, “After working with the tenant to acquire the property on a fund through basis in 2015, we’re delighted to achieve a great result for our investors and remain active in the current market for new opportunities across multiple sectors.”