Tall & Urban News

Property Group to Offload Brisbane Office Tower

21 April 2021 | Brisbane, Australia
In its 56 year history, this is the first time the 21-story tower has been on the market.
In its 56 year history, this is the first time the 21-story tower has been on the market.

The Public Trustee of Queensland and Abacus group are selling their office tower in Brisbane CBD's Golden Triangle, with hopes it could bring more than AU$60 million (US$46 million).

Abacus Property Group hold 67 percent of the tower, which it acquired for $23.5 million (US$18.1 million) in 2016, and the Public Trustee holds the remaining 33 percent.

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The 444 Queen Street property is currently 76 percent occupied, with the Public Trustee operating on seven levels.

This is the first time in its 56-year history the 21-level tower, known to be in need of refurbishment, has comes to the market.

Justin Bond and Blake Goddard of Knight Frank, in conjunction with Tom Phipps, Peter Chapple and Bruce Baker of CBRE, are managing the international expressions of interest campaign.

Bond said it was expected onshore and offshore investors would be interested in the tower.

“The property is one of Brisbane’s best value-add opportunities, offering a rare 100 percent ownership along with a significant refurbishment and leasing program or perhaps a redevelopment,” Bond said.

“Repositioning the asset would bring it up to an institutional-grade asset, with opportunities under the current town planning guidelines including redevelopment into a hotel, build to rent, or a residential and commercial building up to 274 meters high.”

The tower has 13,968 square meters of net lettable area on the 1,708-square-meter CBD site.

A recent Knight Frank report found that Brisbane office market investment activity is rebuilding after a slow 2020.

Last year turnover totalled AU$607.6 million (US$468 million) representing the lowest total transaction level since 2008 and 2009, following the GFC.

This year AsheMorgan has splashed AU$210 million (US$161 million) on 310 Ann Street in Brisbane’s biggest deal for more than a year, while AU$530 million (US$403 million) of Brisbane office assets are under contract.

This includes “the Gold Tower” at 10 Eagle Street, snapped up by local private syndicator Marquette Properties.

For more on this story, go to The Urban Developer.