A five-level commercial office building at 12 Cribb Street, Milton has sold to a private investor for $12,881,500, representing an initial yield of 6.78% and uniquely sold on a net of incentives basis reflecting a rate of approx. $3,900/m2.
JLL in partnership with Savills negotiated the sale on behalf on the Harvest Denison Opportunity Fund #2, after an Expression of Interest campaign attracting interest from local and domestic investors.
JLL said the property was acquired by a Sydney-based family that recognised Brisbane as a market which still reflected good value and long term growth prospects, relative to the Sydney commercial market.
“The acquisition of 12 Cribb Street is another example that interstate and off-shore investors recognise Milton as an established near-city office precinct which has undergone a significant transformation in recent years with the completion and current construction of a number of large scale residential towers; along with the associated rejuvenation of the precinct spreading from the renowned Park Road dining precinct to the Milton Markets behind Milton Train Station and Suncorp Stadium," JLL said.
Savills added, “the sale is the result of a well-executed refurbishment and leasing campaign implemented by an experienced vendor and provides further evidence of the demand for fully leased, prime positioned, near city property in Brisbane.”
The 1,194sqm site offers 3,310sqm of net lettable area and has typical floor plates of 730sqm in a rectangular configuration, maximising space efficiency and natural light penetration.
The property includes five floors of modern quality office accommodation, two ground floor showroom tenancies and a 54-car basement car park.
12 Cribb Street has a WALE of 2.5 years by income, with staggered lease expiries over the next seven years and is underpinned by strong tenant covenants in: MCJV, a key contractor of the Australian Pacific LNG Pipeline project; Worldwide Printing Solutions, Upstream (a Fuji Xerox Company), SureBridge IT and Hannahs.