Aviator Capital secures Brisbane office tower for $50M

A circa $50 million spend sees Australian-based funds management company Aviator Capital secure a 10 level riverside office tower in Brisbane’s CBD.

The commercial asset at 193 North Quay was placed on the market by Australian property development and investment group Kyko Group which has held the property for 15 years.

Kyko Group Director Bill Jenkins explained that the company is redirecting its portfolio towards alternative markets.

“After purchasing the asset in 2007 and enjoying strong returns the timing was right for us to sell,” Mr Jenkins said.

“This transaction will help Kyko Group further focus on markets in which we are actively seeking opportunities with the Sydney office market being a key target.”

Bill Jenkins, Kyko Group Director

Located in the city’s North Quater precinct at 193 North Quay, it comprises approximately 7,631sqm of net lettable area including ground floor retail tenancies and one level of secure basement parking.

With an array of smaller corporate tenants, the tower boasts a diversified cash flow with a WALE of 2.8 years by area. Legal, engineering and technology industries are represented among tenants.

Aviator Capital Managing Director Andrew Glen said the site’s surrounding surge in development activity was a drawcard for the company.

“193 North Quay marks Aviator Capital’s fifth acquisition in Queensland and first in the Brisbane CBD,” he said.

“The property holds a prime riverfront position in a sector of the Brisbane CBD that is set to benefit from enormous surrounding infrastructure development and we were attracted to the fundamentals of the building as an office asset, as well as the longer-term development proposition,” Mr Glen said.

Nearby development projects include the Queen’s Wharf project expected to be completed next year along with the upgrade of the Roma Street Station and connected BrisbaneLive! Entertainment Precinct.

CBRE Associate Directors Jack Morrison and Adelaide O’Brien, along with Senior Director Peter Chapple brokered the sale on behalf of Kyko Group.

“The quality of this asset and its premier location attracted interest from both offshore and onshore investors. CBRE has transacted over half a billion dollars’ worth of office assets priced below $100 million in the first half of 2022,” Mr Morrison said.

“Despite headwinds, Brisbane continues to attract buyers for quality properties such as 193 North Quay and campaigns continue to be well contested.”

Jack Morrison, CBRE Associate Director

Article source: thepropertytribune.com.au