17-level Brisbane tower tipped to nudge $300m
Charter Hall has emerged as the prime contender for the Mary Street tower in Brisbane’s central business district that is being sold by QIC Global Real Estate for about $300 million.
The group is believed to have been drawn to the building’s long-term lease to the Queensland government, bidding more sharply than local and overseas rivals that were chasing the property, one of the largest to be offered in Brisbane this year.
The A-grade tower at 61 Mary St carries a weighted average lease expiry of more than 10 years and is in keeping with Charter Hall’s focus on long-leased assets that are well-positioned to be held through the cycle.
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The 17-level complex in the heart of Brisbane’s CBD is being marketed by CBRE’s Tom Phipps, Bruce Baker and Flint Davidson and Knight Frank’s Justin Bond, Ben McGrath and Neil Brookes on behalf of QIC.
The 28,749sqm tower was one of the main elements of a $562 million government portfolio that QIC bought in 2013. It included seven buildings, some of which have since been sold.
The building has undergone a $44 million refurbishment and has one of the largest floor plates available in the CBD at 1525-2030sqm. The tower also sits on a substantial 3646sqm site.
The tower, fully occupied by the Queensland government under a lease until 2029, is close to the Queens Wharf precinct and proposed Cross River Rail project and the Brisbane Metro.
Charter Hall has a growing roster of buildings in Brisbane. On behalf of a counter-cyclical mandate from Singapore’s GIC Real Estate, Charter Hall last year bought Santos Place from the Malaysian government-owned Permodalan Nasional Berhad for $370 million. It also picked up the 343 Albert St tower for $108 million.
This article originally appeared on www.theaustralian.com.au/property.
