LaSalle assembles $200m Brisbane block with pair of major deals
Heavyweight funds group LaSalle Investment Management, acting for the California State Teachers’ Retirement System, has assembled a major parcel in Brisbane’s prized Golden Triangle worth about $200 million.
The group has bolstered its foothold in the prime Brisbane precinct by acquiring a Queen St office building anchored by the University of Queensland for $52.25 million.
It secured the property at 293 Queen St in a deal on behalf of a separate mandate. It did not identify its client but is understood to be acting for the US group, which was also behind its purchase of the adjoining 307 Queen Street tower from GDI Property Group for $141 million last year.
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CBRE’s Tom Phipps, Flint Davidson and Bruce Baker negotiated both deals, with the latest acquisition giving LaSalle a combined Queen Street landholding of about 2500sq m.
“This is a strategic acquisition, which delivers LaSalle a large underlying site in the heart of Brisbane’s Golden Triangle,” Phipps says.
One of Brisbane’s premier heritage office buildings, 293 Queen St is anchored by the university. The building comprises a net lettable area of 5257sqm, with UQ occupying the ground-floor retail component and 28% of the office space.
UQ’s three floors were extensively refurbished a year ago. The sale price translates to a passing yield of 4.04% with a fully leased market yield of 6.7%.
The building was sold by long-term owner Bloomberg Incorporation Limited, which held it for almost 25 years.
The deal boosts the tally of Brisbane CBD office sales this year to about $3 billion.
“Global capital is now buying into the Brisbane recovery story, with this year’s tally of deals being the second highest on record,” Phipps says. “Institutional investors are actively scouring the market for opportunities.”
This article originally appeared on www.theaustralian.com.au/property.
