An Ipswich office building has sold for $32 million, in one of the largest commercial deals in Ipswich over the past five years.
The Limestone Street Centre, located at 38 Limestone Street was acquired by Sydney-based syndicator Elanor Investors on a passing yield of 9.32 per cent and $4,454 sqm on NLA.
The deal was negotiated by Head of CBRE Brisbane Metropolitan Investments Mike Walsh and fellow Director Peter Court.
“Numerous bids were received from around the country at close of the sale campaign reinforcing the market’s unabated appetite for securely leased and high quality investment grade assets,” Mr Court said.
The property has been extensively refurbished and repositioned to provide a 4.6 year WALE underpinned by a secure lease profile, with the majority of tenants being health and Government related.
The building comprises lower ground retail fronting Limestone Street, ground level retail and office accommodation, and a two level office tower integrated into the south-eastern corner of the building.
A total of 305 car parks are provided across basement, ground, and roof-top level parking.
The site also provides the incoming purchaser with future redevelopment opportunities including the option to retain the existing improvements while developing the vacant 680 sqm portion of the site.
This option permits the integration of the new development with the Gordon Street tower to share services and achieve a 1,400 sqm floor plate.
Alternatively, the entire site may be redeveloped up to ten storeys as of right.
“The exceptional sale outcome is a direct result of the owners outstanding efforts in repositioning the property and underlines the importance of proactive asset management,” Mr Walsh said.