Sold for $210m: Family in biggest office deal of the year
AN extensively refurbished office tower, owned by one of Queensland's foremost property families, has been sold in Brisbane's largest office deal in more than a year.
Victorian-based fund manager AsheMorgan has settled on the $210m acquisition of 310 Ann Street tower.
Formerly Suncorp's 18-storey "wedding cake" headquarters, it was bought by FA Pidgeon & Sons - which is owned by the Pidgeon family - in late 2011 for about $63m.
Through their management vehicle Cornerstone Properties the tower was virtually rebuilt and extensively refurbished.
The now 20-level office tower was reopened in 2017 and is almost fully leased with anchor blue-chip tenants Allianz and the State Government taking up the most space.
CBRE's Bruce Baker, Flint Davidson and Peter Chapple together with JLL's Seb Turnbull and Paul Noonan struck the deal with the sale price reflecting an initial yield of about 5.5 per cent.
Mr Baker said the prime-grade transaction offers significant guidance on market pricing and will provide further impetus for Brisbane's commercial investment market.
"Brisbane is increasingly on the radar for high net worth club and retail syndicate groups seeking investments with a stable return profile, above what can be achieved in other capital city markets," he said.
The building is adjacent to Central Station, one of only four stations servicing the entire Queensland Rail network, and offers superior tenant amenity, including a two-storey end-of-trip facility.
Mr Turnbull said it was the largest institutional sale in the Brisbane CBD market since the first quarter of 2020 and was reflective of the demand we are witnessing for core real estate investments.
The transaction is the first of almost $700m worth of deals expected to be finalised with the next month.
Marquette Properties and partners are believed to be near settlement of the purchase of the 32-storey Gold Tower at 10 Eagle Street for about $285m and Cromwell Property Group is in due diligence to buy 545 Queen Street for up to $120m.
Charter Hall and QuadReal are expected to soon settle on one the last available CBD riverfront development at 309 North Quaty which was the site the long-term home of Triple M and Hit105 for about $65m.
Originally published as Sold for $210m: Brisbane family in biggest office deal of the year