Brisbane

Rare Golden Triangle tower sells for $53.5m

A high-exposure corner holding in Brisbane’s renowned Golden Triangle precinct, the 410Q building, has sold for $53.5 million.

04 Mar 2020

A high-exposure corner holding in Brisbane’s renowned Golden Triangle precinct, the 410Q building, has sold for $53.5 million.

PGA Properties has purchased the boutique 410 Queen Street tower from RG Property on an initial yield of 5.8%. 

With dual frontages on Queen and Wharf Streets and exposure to Eagle Street, 410 Queen has a net lettable area of 5,704sqm and a WALE of 2.8 years.

The building has a current occupancy rate of 94%, including tenants such as the Australian College of Rural & Remote Medicine. 

It is located in Brisbane’s Golden Triangle, long recognised as the city’s key occupier and investor precinct.

CBRE’s Peter Chapple, Tom Phipps and Jack Morrison managed the Expressions of Interest campaign with Mike Walsh and Peter Court from Cushman & Wakefield.

“Corner holdings in the Golden Triangle are highly-coveted, especially high-quality offerings such as 410 Queen Street,” Mr Chapple said. 

“The campaign attracted strong and qualified interest, particularly from new-entrant capital alongside existing CBD owners who have been waiting for a trophy Brisbane CBD asset.”

Mr Walsh added: “From a pricing perspective, the sale reflects the challenge of acquiring a prime corner asset in the CBD, which is noteworthy when you consider the shorter WALE of the asset and subsequent pricing assumptions buyers factored into their numbers. 

“Given the depth of interest, it speaks to the market’s view on the longer-term growth prospects of the CBD.”

Mr Phipps noted he expects international interest in Brisbane offerings to continue to grow.

“Buyers continue to back Brisbane, buoyed by the consistent flow of key infrastructure and entertainment projects being delivered across the city and its surrounds,” he said.

“Foreign interest in the CBD remains strong with activity from Singapore, Germany and – more recently – Hong Kong, and we expect this to increase in 2020.”

According to CBRE research, the Brisbane CBD market has performed strongly over the past 12 months with major transactions headlined by Cromwell’s acquisition of 400 George Street for $525m and the sale of The Complex to Ashe Morgan for $425m. 

“PGA remains acquisitive for high-quality CBD assets across Australia,” PGA Property’s Frank Martinez said.

“We are attracted to the long-term fundamentals the Brisbane market has to offer and the unique position 410 Queen occupies in the financial precinct of the city.”

Since January 2019 there has been $3.05 billion in transactions in the Brisbane CBD – up 114% on the 10-year average. 

“RG Property acquired 410 Queen Street for $28.8m in late-2011 and proceeded to reposition the asset as a ‘boutique A-grade’ building in the Golden Triangle,” RG Property’s Rhett Williams said.

“Over this time we added considerable value to the property and were able to provide our investors with a solid return on their investment. We see continued growth in the Brisbane market and remain acquisitive.”

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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 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.

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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.