The Civil Aviation Safety Authority’s (CASA) national operations headquarters was purchased by The Patella Group for $23 million.
The 4,675 square metre PCA A-Grade building at 12-14 The Circuit Brisbane Airport is fully leased to CASA for another 2.5 years, with a further five year option.
It was developed in 2007, and comprises four levels of office accommodation, ground level foyer, and one level of basement parking.
The base building currently has a 5.0 star NABERS Energy rating and is situated within the Skygate precinct - a vibrant retail, commercial and lifestyle precinct brimming with fashion, food and leisure at the heart of Brisbane Airport.
It is home to more than 160 retail, café and dining options including DFO, Queensland’s first 24-hour Woolworths, Golf Central BNE, Dan Murphy’s, a 4.5 star hotel, medical centre and childcare.
Brisbane Airport Corporation purchased Brisbane Airport from the Federal Government in 1997 under a 50 year lease with an option to renew for a further 49 years.
Under the leasehold tenure, BAC retains ownership and control of the airport in its entirety for the duration of the lease term up to 2096.
BAC will invest $3.8 billion in projects over the next decade including the New Parallel Runway, new car parks and access facilities, terminal expansions, road upgrades, and new aprons and aeronautical facilities.
Colliers International negotiated the off-market sale on behalf of Garda Diversified Property Fund.
“We received strong interest in the property from emerging institutions, privates, and syndicators at levels in line with expectation given the leasehold nature," Colliers National Director of Capital Markets Tom Barr said.
“Buyers were attracted to high tenant retention probability due to the “stickiness” of the tenant to the location and building.
"The rapid growth of the Brisbane Airport precinct underpinned by nearly $4 billion of planned infrastructure investment over the next decade, was also very appealing to buyers,” he said.
The price reflects a capital value of $4,920 per square metre and market yield of approximately 8.3%.
The group also acquired Aviation House in Canberra, which is also occupied by CASA, from Mirvac mid last year for $68.1 million.