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Australian Unity Office Fund Acquires Brisbane Tower

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Australian Unity Office Fund has announced they have acquired 150 Charlotte Street, Brisbane for $105.75 million.

The fund launched equity raising to partially fund the deal, seeking to raise $50 million.

Neighbouring the ‘Golden Triangle’ --- the Eagle Street and Riverside place area -- 150 Charlotte Street is 100 per cent occupied with a 5.7 year weighted average lease.

According to McGrath Real Estate's John McGrath the "Golden Triangle" is set to boom between 2015 and 2020.

McGrath reckons land values in South-East Queensland are undervalued compared to southern rivals Sydney and Melbourne, overdue a big capital value lift with home loan interest rates still historically low.

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AOF fund manager Grant Nichols said the purchase was consistent with AOF's acquisition strategy and will improve the portfolio’s position, including increasing its weighted average lease expiry, occupancy and lease expiry profile.

“The acquisition capitalises on an opportunity in the improving Brisbane CBD office market and will neatly complement AOF’s existing portfolio," he said.

“In Brisbane we have now seen 10 consecutive quarters of positive net absorption to June 2017. This, coupled with the variance in capitalisation rate spreads between Brisbane and Sydney, makes the acquisition a compelling opportunity for investors in AOF as it nears its 18 month listing milestone," Nichols said.

“150 Charlotte Street further underpins AOF’s ability to provide sustainable income returns to investors,” he said.

Australian Unity Fund’s property portfolio currently comprises eight office buildings located across various Australian metropolitan and CBD markets.

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Article originally posted at: https://theurbandeveloper.com/articles/australian-unity-office-fund-acquires-brisbane-tower