US property giant LaSalle Investment Management has swooped on a Brisbane office building in an off-market deal for $52.25 million.
The real estate investment management firm secured the seven-story building at 293 Queen Street, in Brisbane's Golden Triangle, on a passing yield of 4.04 per cent with a fully leased market yield of 6.7 per cent.
Bloomberg Incorporation Limited owned the 5257sq m building, which is anchored by the University of Queensland, for almost 25 years.
The asset, constructed in 1928, neighbours the 26-story tower that LaSalle purchased separately last year for $153 million at 307 Queen Street, dramatically expanding its Brisbane CBD land holdings.
The deal was brokered by CBRE’s Tom Phipps, Flint Davidson and Bruce Baker.
“This is a strategic acquisition, which delivers LaSalle a large underlying site in the heart of Brisbane’s Golden Triangle,” Phipps said.
“They have about 2500sq m on arguably Brisbane CBD’s highest-profile corner.
“We’re finding that while offshore groups focus on the investment metrics of a building they are also attracted to strategic landholdings with a potential higher and better use.”
The latest deal boosts the sales of Brisbane CBD office sales this year to more than $3 billion, explains Phipps.
“Global Capital is now buying into the Brisbane recovery story, with this year’s tally of deals being the second highest on record,” he said.
“Institutional investors are actively scouring the market for opportunities, with domestic and offshore capital identifying that the Brisbane office sector is in a recovery phase and offering considerable value relative to the Sydney and Melbourne markets.”
Brisbane's fringe office market has experienced transaction activity in recent times, with upwards of $500 million being exchanged according to a recent Knight Frank report.
High-profile sales include the recent acquisition of 100 Skyring Terrace in Newstead by Growthpoint, along with the sales of 825 Ann Street and 100 Brookes Street in Fortitude Valley.