Alex Gow Funerals has sold its headquarters in Brisbane’s inner-city suburb of Newstead for $14.3 million, trading for the first time in more than 60 years.
The family-owned funeral business acquired the 5,272 sqm site at 56 Breakfast Creek Road in the 1960s and has operated from the property since then.
The mixed-use development site was sold to a Brisbane-based group which planned to redevelop the site for office use in the future.
Savills’ Peter Tyson and Robert Dunne handled the sale of the property.
“The Newstead – Teneriffe – Fortitude Valley axis remains one of the most desirable development destinations in Brisbane and the site attracted interest from local and interstate developers,” Tyson said.
Dunne said opportunities of that scale with such potential were increasingly rare in the area, as developers scrambled to secure inner-city properties with extensive development potential.
“Being located on busy Breakfast Creek Road, the site provides a gateway address proximate to the CBD and Brisbane’s affluent inner north,” Dunne said.
Recent commercial deals in Brisbane include Hines’ purchase of a Brisbane logistics facility in Pinkenba from Pipeclay Lawson last week, as part of a larger deal worth $211.5 million.
Last month, Alceon sold a Fitness First gym in Lutwyche to Properties & Pathways for $16.87 million, while an EG fund purchased a half stake in the Grand Plaza shopping centre from Invesco at an acquisition core capitalisation rate of close to 5.25%.
Charter Hall and its wholesale industrial partnership with PGGM bought a brownfield industrial site in Bowen Hills for $60 million earlier this year, while PSP Investments and Charter Hall Group acquired an office development under construction in Fortitude Valley.
In February, Marquette Properties exchanged contracts to buy the Blue Tower office property in the city’s ‘Golden Triangle’ from Dexus in one of the biggest deals in the country during the first quarter.