Trilogy makes $25.5m play for Brisbane office building
Fund manager Trilogy is expanding its interests in the Brisbane commercial property arena, announcing it will acquire a near-city office building for $25.5 million.
The six-storey property at Milton, about 2km from the CBD, will be purchased through the unlisted Milton Office Trust, specifically created for the property.
Six tenants now occupy 89% of the building, which spans 3903sqm of lettable space. AMP subsidiary SuperConcepts is the largest tenant, occupying about 35% of the space. The building’s unoccupied area will also be supported by a vendor rental guarantee for a two-year period. The Milton property last changed hands in 2015 for $20.4 million.
Commercial Insights: Subscribe to receive the latest news and updates
The new unlisted trust will forecasts a distribution yield of 7.5% a year until June 30, 2020. CBRE and Knight Frank brokered the sale.
Executive deputy chairman of Trilogy Capital Group Rodger Bacon expects the area’s office market to strengthen in future.
“The Brisbane near-city suburban commercial office market has received some positive attention of late with Savills reporting $535m in transactions in the 12 months to June,” Bacon says.
“This interest has been received largely from offshore investors and fund managers.
“With little new supply projected in the near future, and declining vacancy, we believe demand for property such as 16 Marie St, Milton, and others like it, will strengthen in the medium to longer term.”
This article originally appeared on www.theaustralian.com.au/property.
