A 28-storey Brisbane office tower has sold for $113.6 million, marking the first time in 25 years the 288 Edward Street asset has changed hands.
Heitman snapped up the tower in partnership with local fund manager Marquette Properties on an 8 per cent yield.
Industry sources indicate that Marquette secured a 9,000sq m lease during due diligence with US firm Concentrix, lifting the occupancy of the asset to around 90 per cent.
The asset was just 59 per cent occupied when it hit the market in mid-2018.
Canadian property group Quadra Pacific withdrew from Brisbane’s office market last year, listing the older Edward Street asset along with a 16-storey Mary Street tower.
Marquette managing director Toby Lewis said the asset presented a good value-add opportunity in Brisbane’s CBD.
“We have exciting plans to transform the asset,” Lewis said.
“Its central position relieves leasing stress and afford us options to improve the retail podium and the public realm dramatically.”
Heitman was joined by four offshore investors on the deal.
“They all believe in the Queensland economy’s direction, the growth of Brisbane and its continued improvement in the standings of Asia-Pacific cities to invest,” Lewis said.
Marquette manages $300 million of commercial and retail assets across South East Queensland.
Heitman recently picked up the Brisbane Barracks with Fortius Funds Management and the K1 office tower in Brisbane’s Fortitude Valley from Melbourne syndicator Impact Investment Group.
Quadra acquired 288 Edward Street for $27 million in the early ’90s. The 133 Mary Street asset will settle in coming weeks.
The 288 Edward Street sale was handled by JLL agents Luke Billiau and Seb Turnbull.