Newstead is continuing to be popular with investors and developers of commercial real estate.
A demonstration of this is the BOQ Headquarters in Newstead which has been sold to Growthpoint for $250m
ASX-listed Growthpoint Properties Australia has purchased the Bank of Queensland headquarters building in Newstead for $250 million.
The A-Grade office building, at 100 Skyring Terrace Newstead, was traded on a 6.1 per cent yield with a 7.5 year WALE.
Major tenants include ASX-listed Bank of Queensland and Collection House.
The purchase helps Growthpoint increase it’s substantial portfolio and builds upon its income improvement strategy.
The purchase of the property will be partially funded by an equity raising of up to $135 million via a one-for-17.65 accelerated non-renounceable rights offer.
Growthpoint has committed to take up its full entitlement of about $89 million worth of securities under the rights offer.
New securities issued under the equity raising will rank equally with existing securities.
“The acquisition further diversifies Growthpoint’s high-quality portfolio and again demonstrated the group’s ability to source and execute quality transactions across sectors,” Growthpoint managing director Tim Collyer said.
The building is located in Newstead, one of seven inner-city locations pegged for urban renewal as part of Brisbane’s sprawling inner-city office market.