Cromwell Property Group has bought a 24-storey office building in Brisbane’s CBD from property fund manager ISPT for $184.7 million, marking its second office deal in the city this year.
The 100 Creek Street office property, which was acquired on behalf of the Cromwell Direct Property fund, has 20,223sqm of net lettable area and is located in Brisbane CBD’s ‘Golden Triangle’ precinct.
“The asset has a sensational location, benefits from great amenity and has been recently substantially refurbished,” said Cromwell Head of Retail Funds Management Hamish Wehl.
ISPT had owned the building since 1998 and recently refurbished the property through the repositioning of the ground floor lobby and end-of-trip facilities.
The building holds a 5-star NABERS energy rating, as well as a 6-star NABERS indoor environment rating.
The deal marks the fund’s second office acquisition in Brisbane this year after its purchase of the 545 Queen Street office asset in May.
The fund paid $117.5 million for the grade-A office building, also located in Brisbane’s ‘Golden Triangle’.
The fully-let asset offered 13,363sqm of net lettable area and a Weighted Average Lease Expiry (WALE) of 4.2 years.
At the time of the deal, CBRE Queensland Senior Managing Director Bruce Baker said there had been a strong increase in buyer demand for high quality, multi-let Brisbane office towers.
He said long-term investors were expecting a flight to quality, as tenants sought to upgrade to prime grade CBD and metropolitan office assets.
In other Brisbane office deals this year, Dexus and Canada Pension Plan Investment Board (CPP Investments) sold the 34-storey office building at 10 Eagle Street to Marquette Properties for $285 million.
Hines bought the 50 Ann Street office property on behalf of its Hines Asia Property Partners fund from ESR Australia for $211 million in May, and a joint venture between Cornerstone Properties and Pigeon Holding sold the 310 Ann Street office property to AsheMorgan for $210 million.