In the largest retail deal so far this year, well known Brisbane retail arcade Post Office Square was purchased for about $95 million by Global investment manager LaSalle Investment Management.
Located underground between Queen Street and Adelaide Street, Post Office Square has a net lettable area of 1,756 square metres along with 29 specialty tenants, six ATMs and a 316-bay car park.
It was previously owned by a syndicate of investors led by Marquette Properties and included Ashe Morgan and Bricktop. The syndicate acquired the property for $67 million in 2014. Before that, it changed hands in 2005 when the former CFS Retail Property bought it for just over $70 million.
The deal for the asset was negotiated by JLL. According to the Australian Financial Review, the recent Post Office Square deal indicates a continued demand for retail centres and assets from big businesses, and South-east Queensland's retail asset market has remained strong, with transaction volume for the third quarter at $241.9 million across 15 deals.
This transaction also further cements LaSalle's interest in the Brisbane area, adding on their plans to redevelop the Fortitude Valley railway station in Brisbane into a $500 million mixed-use development.
$500m Apartments, Hotel, Office Redevelopment Slated For Valley Metro]The proposed development involves the construction of a 30-storey mixed use development with 270 apartments, comprising a podium and tower form with retail uses in the lower levels and multiple dwelling units in the tower. At podium level 1 a total of 380 square metres is proposed to accommodate a mix of retail activities including shops, restaurants and a hotel forming part of the broader "Valley Metro" site, which is intended for progressive redevelopment.
The $95 million Post Office Square deal is expected to settle later in January 2017.