Investment giant Centuria has purchased a recently built commercial building for $19.74 million on a 7 per cent yield in Northshore Hamilton.
Developed by Alceon Graystone in April last year, the three-level A-grade office building sits within the Brisbane Technology Park Northshore office precinct which spans 304 hectares of riverfront, located six-kilometres from Brisbane’s CBD.
The property fund purchased the newly built office, at 381 Macarthur Avenue, in a move that marks its first direct property acquisition.
Centuria head of real estate Jason Huljich said the purchase is in line with the fund’s strategy.
“We have always intended to acquire direct assets for the Fund, and 381 Macarthur Avenue is a high-quality, well-located asset with financially strong tenants,” he said.
Work kicked off transforming the expansive site of state-owned industrial port into a $5 billion mixed-use precinct in 2015, with the site said to be Queensland’s largest waterfront urban renewal precinct.
The next phase of commercial development to kick off will include four additional office developments spanning 16,000sq m, along with plans for an integrated health and medical precinct.
Huljich anticipates increasing investor demand in South East Queensland.
“The fund’s exposure to QLD follows our view that Brisbane office markets are steadily improving. In the last half we’ve seen yield compression, vacancy rates at five-year-lows, and rising demand for prime office – trends we expect to continue,” he said.
Centuria’s newly acquired 2,847sq m asset has a 5.1-year WALE. Colliers Sam Biggins brokered the deal, with settlement expected by the end of May 2019.