RF Corval has sold an A-grade office building in the Brisbane suburb of Hamilton to a Sydney-based private investor for $46.5 million, representing a 5.3% capitalisation rate.
The 365 Macarthur Avenue property offered 5,040 sqm of net lettable area in the heart of the priority development area of Northshore Hamilton – a riverfront precinct that will accommodate the main athletes’ village for the Brisbane 2032 Olympic Games.
The asset was fully leased to one of the world’s leading integrated energy companies, providing a weighted average lease expiry (WALE) of 9.5 years.
Built in 2016 for the occupier, the lease term was set to expire in 2031, aligning with the Northshore area’s redevelopment ahead of the Brisbane Olympics.
“After working with the tenant to acquire the property on a fund through basis in 2015, we’re delighted to achieve a great result for our investors and remain active in the current market for new opportunities across multiple sectors,” RF Corval’s Head of Transactions Oliver Picone said.
CBRE agents Jack Morrison and Adelaide O’Brien brokered the deal for the vendor, alongside Peter Court, Mike Walsh and Fred Le Fanue from Cushman and Wakefield.
Offering a blue-chip covenant and CPI increases, Morrison said it was easy to see why the demand for this asset was so high, as it provided an attractive hedge against inflation.
“We are expecting to announce a number of transactions in the Brisbane office market below $100 million in the coming months, which will continue to demonstrate that quality property in Brisbane is still highly contested,” Morrison said.
“As well as the high-quality nature of the asset, the fact there were no outstanding incentives running through the cashflow was a rare and appealing point for investors seeking clean cash flow in an emerging precinct,” Cushman & Wakefield’s Court said.
Other Brisbane office deals include Cromwell Property Group’s sale of its head office building in Brisbane’s CBD to investment house Wingate for $108.5 million, while Southern Cross Group purchased the recently-built office building in Eight Mile Plains from Alceon for $19.735 million.
Alex Gow Funerals sold its headquarters in Newstead to a Brisbane-based group for $14.3 million in May, with plans to redevelop the site for office use in the future.
In February, Canadian pension investment manager PSP Investments and Charter Hall Group acquired an office development under construction in Fortitude Valley, while Marquette Properties bought the Blue Tower office building in Brisbane’s CBD from Dexus in a $420 million deal.
