Brisbane Office Tower Purchased by Charter Hall for $275 Million.
ASX-listed Charter Hall has re-entered the Brisbane’s office market with the purchase of 61 Mary Street in the CBD for $275 million.
The 17-level office tower was sold by QIC Global Real Estate and will now become part of Charter Hall’s unlisted District Office Fund (DOF) adding to a $1.7 billion real estate portfolio in assets under management on behalf of its high net worth and SMSF investors.
The property, which completed a $38 million refurbishment works program in 2018, is in the heart Brisbane’s government precinct and is fully leased to the Queensland Department of Transport and Main Roads for a further 10 years.
The property acquisition is in line with Charter Hall’s long-standing focus on assets with long-leased government and high credit rated tenants.
The Mary Street building also encompases some of the largest floor plates available in the CBD, between 1,525 and 2,030 square metres and sits on a rarely obtainable 3,646 m2 site while also holding a 5 Star NABERS energy rating.
“The office market is extremely strong for high quality long WALE investment assets, particularly leased to government and credit rated tenants,” Charter Hall Office chief executive Adrian Taylor said.
“This investment extends the relationship the Charter Hall Group has with the Queensland Government as a tenant customer and further extends our significant investments in the Brisbane CBD where we are seeing improving market conditions and positive rental reversion drivers.”
This is a sure sign that Brisbane’s commercial real estate market and complements Charter Hall’s recent $93 million acquisition of 40 Tank Street, a half share in B-grade office building Capital Hill at 85 George Street for $60 million as well as the acquisition of a property on Turbot Street on behalf of Singapore’s GIC in May for $108 million.
The rate of development is also rapidly increasing, with Mirvac’s $836 million development at 80 Ann Street and a $650 million office building on Queen Street a joint venture between Charter Hall and Investa gaining approval.
Charter Hall also purchased a high-profile development site for No. 1 Brisbane, a proposed 81-storey tower on Brisbane’s Queen Street Mall which was granted approval in 2017.