Brisbane heritage building strikes chord with Roosters chairman

Heritage-listed buildings are continuing to find favour among commercial property buyers, with Sydney Roosters chairman Nick Politis understood to be behind the purchase of Brisbane’s Heckelmann’s Building.

The building at 171 Elizabeth St is the second heritage-listed property to be sold in the immediate vicinity in recent months, after neighbouring ‘Tara House’ at 179 Elizabeth St was bought late last year.

Heckelmann’s Building fetched $15.5 million amid a flurry of interest that agents say was due to investors being priced out of the Sydney and Melbourne markets.

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The historic property was built in 1891 by tinsmith Joseph Heckelmann and at one point was part-owned by Australian tennis legends Rod Laver and Ken Rosewall. It was added to the Queensland Heritage Register in 1992.

‘Tara House’, which was home to the Queensland Irish Club, sold for $8.1 million – the first time the building had ever been sold in its 95-year history.

Knight Frank senior director of institutional sales Justin Bond and associate director of institutional sales Tom O’Driscoll managed the sale of both properties, with Bond saying 171 Elizabeth St had proved popular among interstate investors.

‘Tara House’, at 179 Elizabeth St in Brisbane, sold late last year for $8.1 million.

“Interestingly, most of the offers received were from interstate investors who have been priced out of the Sydney and Melbourne CBD markets,” Bond says.

“Our formal marketing campaign for 171 Elizabeth Street resulted in a large number of offers from private investors and developers. The attraction in owning part of Brisbane’s history was a major influence in many of the enquiries received.”

“We are finding that the heritage feature of well-located CBD assets is a major drawcard.”

Heckelmann’s building comprises a lower ground level and three upper levels with a total lettable area of 2310sqm. Its current tenants include Mitre 10, Metcash and Holmes College.

We are finding that the heritage feature of well-located CBD assets is a major drawcard

O’Driscoll says the scarcity of heritage properties reaching the market made them increasingly popular.

“Over the past six months we have managed several transactions in Brisbane’s CBD for similar heritage assets. The interest, predominately from the HNWI sector, continues to grow for this type of stock,” he says.

“This interest will strengthen as opportunities similar to 171 and 179 Elizabeth are becoming increasingly limited.”