Tribune Properties Pty Ltd has beaten over 200 interested parties for a mixed-use asset 31 Duncan Street, Fortitude Valley after acquiring it for $64 million.
Located at the gateway to the Fortitude Valley precinct, approximately 750 meters from the Brisbane CBD, the asset was sold by JLL on behalf of AM Valley Heart Pty Ltd, representing a net passing yield of 6.58 per cent.
Duncan Street’s asset comprises a commercial car parking facility for 464 vehicles, 2,816 square metres of office and 1,310 square metres of retail and substantial redevelopment potential of up to 30 levels.
The International Expressions of Interest campaign conducted in conjunction with CBRE generated significant interest with in excess of 200 enquiries from a diverse capital base, many of who were enticed by the asset’s strong tenant covenants, significant underlying land value as a 4,183 square metre site and multiple redevelopment options.
31 Duncan Street is 96 per cent by income leased with an 8.9 year WALE.
Around 62 per cent of the asset’s income is underpinned by a fifteen year lease to Secure Parking, which expires in 2031.
“The asset had the unique benefit of strong cash flow fundamentals and significant underlying land value,” JLL Director of Queensland Sales & Investments Luke Billiau said.
31 Duncan Street is situated in Brisbane’s Urban Renewal Precinct, which has consistently outperformed wider occupier markets, registering a 127.4 per cent increase in occupied stock. According to JLL, this outperformance has continued over the past twenty-four months with office vacancy decreasing five per cent from its January 2015 peak to 9.9 per cent.