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CBD $210m Tower Deal Tipped to Refuel Office Market

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Commercial property fund manager AsheMorgan has splashed $210 million on 310 Ann Street in Brisbane’s biggest deal for more than a year.

Cornerstone Properties bought the property for $63 million in 2012 in a joint venture with FA Pidgeon and Son and spent about $60m refurbishing the 18,360sq m of office space across the 20-storey tower.

CBRE’s Bruce Baker, Flint Davidson and Peter Chapple with JLL’s Seb Turnbull and Paul Noonan negotiated the sale of the refurbished building.

Baker said the sale price reflected an initial yield of about 5.5 per cent and indicated an ongoing investor interest in tenanted commercial assets in the city’s CBD.

“This prime-grade transaction offers a significant guidance on market pricing and will provide further impetus for Brisbane’s commercial investment market,” Baker said.

“Brisbane is increasingly on the radar for high-net-worth club and retail syndicate groups seeking investments with a stable return profile, above what can be achieved in other capital city markets.”

The building was stripped back to its skeleton in 2017 and Hutchinson Builders engaged to expand floor plates, create new ceiling heights, install a new floor-to-ceiling glass facade, streetscape and awnings. The building now has a 5.5-star NABERS energy rating.

JLL’s Seb Turnbull said the tower offered a 7.6-year weighted average lease expiry and was 94 per cent leased to blue-chip tenants including Allianz and the Queensland State Government.

“The deal is the largest institutional sale in the Brisbane CBD market since Quarter 1 of 2020, and is reflective of the demand we are witnessing for core real estate investments.”

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Article originally posted at: https://theurbandeveloper.com/articles/cornerstone-properties-offloads-cbd-tower-for-210m