Centuria has offloaded an A-grade office building in Brisbane’s inner city suburb of Cannon Hill for $36.95 million.
The two-storey commercial building at 19 Corporate Drive, six kilometres from the CBD, which had been owned through one of the fund manager’s unlisted funds, has a net lettable area of 6028 sq m and on-site parking for 145 cars. The sale price represents a core cap rate of around 6.75 per cent.
Sydney-based syndicator Aviator Capital acquired the property, its third commercial asset in the Brisbane market.
The sale was negotiated by Matt Barker, Justin Bond and Christian Sandstrom of Knight Frank, along with Anthony Ott and Peter Chapple of Savills.
“Cannon Hill continues to attract investor interest due to the quality of office developments, accessibility to public transport, excellent car parking and low vacancy rate,” Mr Bond said.
The building, which was completed in 2008, is located in the business hub of Southgate Corporate Park which includes tenants such as Holden, Optus, National Australia Bank and the Queensland state government,
“Investors recognised that there is significant underlying demand for users of business park assets including industrial and logistic users seeking a higher level of accommodation for their staff than traditionally offered in a warehouse asset,” Mr Chapple said.
The property was bought through one of Centuria’s unlisted single-asset funds for $23.3 million in 2012.
“The fund’s investment rationale since commencement was to provide investors with stable, high-yielding and diversified income returns from a quality commercial office property situated in one of Brisbane’s most prominent growth corridors,” Jason Huljich, Centuria’s head of real estate and funds management, said.
Centuria owns several property assets in the Queensland capital including 825 Anna Street and 100 Brookes Street in Fortitude Valley, which was part of the $645 million Hines portfolio the Centuria Metropolitan REIT acquired in partnership with Lederer Group.
Source: www.commercialrealestate.com.au