Forza Property Holdings has secured a premium A-grade office building in one of Queensland’s best performing business hubs for $65.5 million.
Located in the revered South Brisbane office precinct, the building at 10 Browning Street comprises a total net lettable area of 11,214sqm – including a retail component totalling more than 2,500sqm.
CBRE’s Capital Markets team, led by Bruce Baker, Flint Davidson and Tom Phipps, negotiated the sale on behalf of vendor, Armada Funds Management.
The property, anchored by The Melbourne Hotel, Visionstream and Credit Corp, sold on an initial yield of 7.89%.
Mr Davidson said the property’s strong tenancy profile and 5.19-year WALE were key selling factors.
“Whilst stock remains tight around the country, Brisbane continues to provide opportunities to acquire modern, well-let assets with robust initial yields,” Mr Davidson said.
Mr Phipps said the International Expressions of Interest campaign attracted a strong level of interest from both local and international groups.
“With transactional volumes down around the country, Brisbane continues to provide attractive risk adjustment returns when compared to Sydney and Melbourne,” Mr Phipps said.
“The strong level of interest during the sale campaign is testament to the quality of the asset and its location in one of Queensland’s best performing office markets.”
Long term debt funding for the acquisition was originated by Matt Lawrence of CBRE Capital Advisors.
The Browning Street office building adjoins the popular West End dining and retail precinct and benefits from excellent vehicular and pedestrian connectivity – linking directly to major arterial routes and being only ten minutes’ walk to South Brisbane train station.