Queensland Investment Corporation has put its 41 George Street office tower in Brisbane on the market, with expectations it could fetch up to $150 million.
The building, next to the proposed $2 billion integrated resort and casino precinct ‘Queens Wharf, is set on a 2,811sqm elevated corner site and is improved with a 27 level commercial office building providing 29,960 sqm of net lettable area.
The State of Queensland is the major tenant bringing in a net passing income of $13,939,713 per annum.
The property is being marketed by Tom Phipps and Jason Lynch of Colliers International and Shaun Douglas and Ken Lucht of Chesterton International, on behalf of QIC in an international expressions of interest campaign.
Mr Phipps said the lease to the State of Queensland provided exceptional cash flow security until 2021.
“This asset is unique to any other CBD offering currently on the market as it provides a combination of secure income from a government tenant and considerable potential for future upside.
“It is interesting to note that the State of Queensland initial lease term expires within 12 months of the scheduled opening of the Queens Wharf in 2022.”
According to Mr Lynch opportunities to acquire major assets with WALE in excess of five years such as 41 George Street will be rare for the next several years due to the current CBD market being so tightly held by long term investors.
“In addition to this the building lends itself to a range of redevelopment and value add options. These include office refurbishment, adaptive reuse and further development. The building’s floor plate of 1,021sqm has potential for adaptive reuse to hotel, student accommodation and residential apartments,” said Mr Lynch.