- The asset is currently fully leased to Chevron Australia
- Located within the Northshore Hamilton priority development area
- CBRE and Cushman and Wakefield sold the asset on behalf of vendor RF CorVal
One of Brisbane’s most significant metropolitan office assets has been acquired by a Sydney-based private investor for $46.5 million, reflecting a capitalisation rate of 5.3%.
Fully leased to Chevron Australia, 365 Macarthur Avenue, Hamilton, currently has a WALE of 9.5 years.
Investors were attracted to the building given it is located within the priority development area of Northshore Hamilton, a riverfront precinct that will accommodate the athlete’s village for the 2032 Brisbane Olympic and Paralympic Games.
The building was originally constructed in 2016 for Chevron, with the integrated energy company committing to an initial 15-year term, with the 2031 expiry date aligning with the Northshore area’s redevelopment just before the start of the Olympics.
Hedge against inflation
The A-grade building offers a net lettable area of 5,040 sqm, has a 1:22 sqm car parking ratio, and natural light on all of the floor plates.
Jack Morrison and Adelaide O’Brien of CBRE brokered the deal for property fund RF CorVal, with assistance from Cushman and Wakefield’s Peter Court, Mike Walsh and Fred Le Fanue.
Mr Morrison said given the asset’s blue-chip covenant and CPI increases, he was not surprised why demand was high, as it gives investors a hedge against inflation.
“We are expecting to announce a number of transactions in the Brisbane office market below $100 million in the coming months, which will continue to demonstrate that quality property in Brisbane is still highly contested,” Mr Morrison said.
The sale follows a string of transactions in the Brisbane market since the start of the year.
“As well as the high-quality nature of the asset, the fact there were no outstanding incentives running through the cashflow was a rare and appealing point for investors seeking clean cash flow in an emerging precinct,”
Peter Court, Cushman and Wakefield
RF Corval’s Head of Transactions Oliver Picone noted, “After working with the tenant to acquire the property on a fund through basis in 2015, we’re delighted to achieve a great result for our investors and remain active in the current market for new opportunities across multiple sectors.”
