- The building's previous sale exceeded $200M
- Building is fully leased to Brisbane City Council
- Site offers 355 car bays - translating to a 1:50 car parking ratio
Green Square South Tower in Brisbane’s Fortitude Valley has been listed on the market with an expression of interest campaign hoped to attract local and international interest.
The site was last purchased in 2019 for $205.5 million by South Korea’s Teachers Pension through its asset manager AXA Investment Managers.
The international expression of interest campaign is being run by CBRE‘s Tom Phipps, Bruce Baker and Peter Chapple, together with JLL’s Seb Turnbull and Paul Noonan.
The five-storey building at 505 St Pauls Terrace offers 17,618sqm of office space with sole tenants, Brisbane City Council, currently occupying the building.
The Government-backed income is expected to be a drawcard for prospective investors along with the anticipated initial yield in the mid 7% range.
CBRE’s Mr Phipps believes Queensland is a national leader in job creation, particularly in the public and financial sectors
“This is expected to continue for the foreseeable future, underpinned by strong economic growth and interstate migration,” he said.
“Coupled with the state’s strong COVID management in 2020 and 2021, this is generating continued domestic and offshore interest in Brisbane office investment opportunities office market.
“Interest is being further spurred by Brisbane’s development boom, with approximately $26 billion worth of inner-city infrastructure and major projects in the pipeline or underway and a significant additional boost anticipated following the awarding of the 2032 Olympics hosting rights.”
The St Pauls Terrace listing is the second recent Fortitude Valley commercial building to come on the market with HQ South Tower, currently under an expression of interest campaign.
The building constructed in 2007 and designed by Cox Architecture was the first Green Star certified project in Queensland.
JLL’s Mr Turnbull highlighted the attractive location of the tower.
“The building is situated in the heart of the Fortitude Valley Core commercial precinct, approximately 75m from Fortitude Valley Train Station, providing excellent tenant amenity and connectivity.”
“It also occupies a massive 6,426sqm site – offering three street frontages and significant redevelopment potential of up to 20 levels under the current neighbourhood plan,” he said.
The Expressions of Interest campaign for Green Square South Tower closes on 31 March 2022.
