SYDNEY, April 30, 2020 – The City of Brisbane Investment Corporation (CBIC) has sold the South Regional Business Centre (SRBC) at 665 Fairfield Road, Yeerongpilly to WA-based Ascot Capital Limited for $35.25 million.
Cushman & Wakefield’s Mike Walsh, Peter Court and Nick Spiro, Savills’ Greg Woods and Peter Chapple (formerly of Savills) brokered the deal.
The site, with a WALE of 8 years, is fully leased to long-term tenant, Brisbane City Council with two, five-year options to extend. CBIC said the sale was part of their strategic plan to rebalance their property portfolio and finance the Council’s program to increase green space for Brisbane residents.
Located 5.5km south of Brisbane’s CBD, the three-storey, A-grade site comprises 4,198 sqm of net lettable area across three levels and includes 71 car spaces.
Cushman & Wakefield’s Joint Head of Middle Markets QLD, Mike Walsh, said the sale was hotly contested with 13 bids received in total from both domestic and offshore parties.
“Investors were clearly attracted to the Government-backed lease covenant, long term tenure and net lease structure, and given the current climate we expect the market will place a more heightened focus on security of income and covenant moving forward,” Mr Walsh said.
Cushman & Wakefield’s Joint Head of Middle Markets QLD, Peter Court, said: “Despite current market uncertainty, investors were attracted to a high-quality office building, which is well placed being across from the $850 million master-planned Yeerongpilly Green community project.”
“This interest was heightened by the fact the site has an adjoining train station, as well as direct access to major road networks and public transport.”
Nick Spiro, Director, Commercial, Cushman & Wakefield added: “Despite the unique challenges facing the sector, the Brisbane market entered this period in good shape and is well positioned for the eventual recovery.”
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