- 159 Coronation Drive and 5 Cribb Street are underpinned by 3,264 sqm of gross leasable area
- The assets have a net income of $2.85 million
- Had also recently undergone extensive capital works, sought by investors who don't want to wait amid material and labour shortages for such works
Two premium buildings in the inner-Brisbane suburb of Milton have been acquired by a local private investor for $46.6 million.
Located in a highly connected office precinct, 159 Coronation Drive and 5 Cribb Street are underpinned by a 3,624 sqm gross leasable area (GLA).
The buildings have been restored to an A Grade standard and have a 100% occupancy rate. Currently, there are eight global, national and local tenants, with the weighted average lease expiry (WALE) 4.5 years.
Presently, the assets have a net income of $2.85 million.
Booming Brisbane office market
Jack Morrison and Adelaide O’Brien of CBRE brokered the deal for vendor Wallum Partners, who had acquired the property in 2018 for $26 million.
The sale represents the third major middle market office transaction involving a private investor sale in Brisbane over the past month.
“This wave of activity in the first half of 2022 demonstrates that quality property in Brisbane is highly contested, particularly assets with stable income profiles and significant land holdings,” Mr Morrison said.
“Assets such as 159 Coronation Drive, Milton will always be attractive to both the occupier and investor market in Brisbane.”
Ms O’Brein added, “In a market where the cost of construction materials has increased significantly, assets that have recently undergone extensive capital works programs provide a safeguard against additional cost outlays and are positioned to capitalise on future rental growth.”
“The refurbishment Wallum Partners conducted on 159 Coronation Drive stands out as best in class, as is evident by the buildings’ success in attracting top tier firms and a sophisticated Brisbane Private investor to purchase the asset.”
Adelaide O’Brien, CBRE
Additionally, the property adjoins Milton Green, which was endorsed by Shavher following the $400 million acquisition that occurred earlier this year.
Coronation Drive is within a kilometre of a string of major projects disrupting Brisbane in the lead-up to the 2032 Olympics, such as the Cross River Rail, Queen Wharf and the Brisbane Metro, all of which are due for completion by 2026.
