An office asset in Brisbane’s golden triangle has changed hands, with Prime Super and advisor Whitehelm Capital snapping up the 313 Adelaide Street CBD tower in an off-market deal.
International funds house DWS divested the 21-level tower in a transaction understood to be worth close to $160 million.
The last time the Adelaide Street tower changed hands was in 2015 for $125 million.
The latest Adelaide Street buy also follows Prime Super and Whitehelm’s $76 million purchase of the Citilink Business Centre in Brisbane's Bowen Hills from Sentinel Property Group in July.
CBRE’s Tom Phipps, Bruce Baker and Flint Davidson negotiated the off-market deal, while CBRE’s debt and structured finance team’s Matthew Lawrence arranged the debt facility.
Phipps said the Adelaide Street deal highlights heightened onshore investor activity in Brisbane following the state government’s June budget announcement to introduce a foreign land tax surcharge to 2 per cent, which has since been revised.
“Investment volumes have remained strong, with domestic investors identifying that Brisbane offers good relative value,” Phipps said.
“Assets providing long term, government-backed income with fixed annual rental increases are particularly sought after in the current low growth environment, as highlighted by the 313 Adelaide Street transaction.”
The sale reflects a core capitalisation rate of circa 5.75 per cent.
The A-grade building has a net lettable area of 14,592sq m and is home to anchor tenant the Queensland Government’s Department of Transport and Main Roads.