Brisbane tower in Adelaide Street hits the market for $20m
Private investor Lake Nathan is selling its mid-market B-grade office tower at 247 Adelaide Street in the Brisbane CBD with price expectations near $20 million.
Office asset trading has been ramping up in the Queensland capital as the economy improves and capital investors seek better yields outside Sydney and Melbourne. Asset owners, too, have been investing in capital expenditure and repositioning their buildings for better rental, as is seen with 247 Adelaide Street.
Lake Nathan has spent over $2 million in refurbishing the 3012 square-metre seven-level building. It benefits from a new chiller, lift controllers and car upgrades and new end-of-trip facilities.
The tower is anchored by tenant Bendigo Bank, and a weighted average lease expiry of 3.63 years.
“The owner has chosen to divest the asset to capitalise on the strengthening Brisbane office market and focus on their new project at 26 Wharf Street,” Colliers International’s Sam Biggins said.
“The value proposition of the Brisbane CBD office market is clear, with yield spreads in the range of 25 to 120 basis points over the Sydney and Melbourne CBD office markets.”
“The city is currently in an infrastructure boom, with interstate migration driving population growth and demand for office space.”
Mr Biggins is working with colleague Tony Wang on the expressions of interest sale of the tower.
Mr Wang said he has fielded interests from Asian investors, particularly those from Hong Kong, Singapore and Vietnam.
Brisbane City Council recently announced the Adelaide Street Vision Priority Project, which will improve the streetscape with widened footpaths, and increased pedestrian connectivity in Adelaide Street.
In typical asset recycling activity, seller Lake Nathan recently acquired another tower, at 26 Wharf Street, for $9.8 million.
