Charter Hall Group has acquired the landmark 343 Albert Street office tower in Brisbane for $108 million.
Charter Hall was awarded a mandate last year to pursue counter cyclical investment opportunities on behalf of a sovereign fund. The purchase of 343 Albert Street is hot on the heals of Charter Hall’s acquisition of the Santos Place in Brisbane.
CBRE’s Bruce Baker, Flint Davidson and Tom Phipps managed the Turbot Street deal off market on behalf of joint venture owners Amalgamated Property Group and Morris Property Group.
Charter Hall’s Fund Manager – Office Partnerships Trent James said; “We are excited to secure our second Brisbane CBD office investment for the CCT partnership, which extends the portfolio to >$450 million. The Brisbane CBD is performing in line with our partnership expectations and we look forward to exploring further opportunities.”
The 20,000sqm, 343 Albert Street tower is situated on a prominent corner site opposite King George Square.
Major tenants the Department of Human Services and Canstar recently signed seven-year lease renewals, with the building also occupied by Pragmatic Training and the South East Queensland Office of Lord Mayors.
The site, which fronts both Albert and Turbot streets, also has significant development potential and was previously approved for a premium office tower of circa 50,000sqm.
CBRE’s Mr Baker said the Charter Hall deal highlighted that Brisbane was back on the radar for investors seeking counter cyclical, core-plus style opportunities.
“Improving economic conditions, strengthening tenant demand and net effective rent growth are underpinning growing local and offshore buyer interest in the Brisbane CBD,” Mr Baker said, noting that the market continued to provide a comparatively attractive yield spread to Sydney and Melbourne.
A spokesperson for Amalgamated Property Group and Morris Property Group said the two organisations were progressively dealing with their jointly owned assets as each group repositioned their investment and development portfolios in Brisbane, Canberra and the Gold Coast.
Amalgamated has under construction the Civic Quarter in Canberra City - a 20,000sqm, premium grade office building, which will add to the group’s burgeoning investment portfolio in Canberra.
Morris Property Group is meanwhile targeting other opportunities in the Brisbane CBD and has also added to its Canberra portfolio, having recently completed the redevelopment, upgrade and repositioning of Canberra House, a 10,000sqm commercial and retail complex in Canberra City.
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