- RG property acquired the office complex in Brisbane on 37 Kennigo Street
- A historic site with three character buildings
- Was originally constructed in 1916 as the Keating’s Bread Factory
RG Property, a property investment, asset management and development firm, are continuing the expansion of their Brisbane portfolio by acquiring the Fortitude Valley office complex.
The Brisbane office complex, located at 37 Kennigo Street, features three heritage character buildings on a large 5,094sqm inner-city landholding with dual street frontages.
Originally built in 1916 as the Keating’s Bread Factory, the complex is in part heritage listed with redevelopment and refurbishments occurring in 2008, 2017 and 2020.
The building themselves provide around 2,955sqm of modern, high-quality office space in addition to 46 car bays.
Hassel Architects are the major tenants with various smaller occupiers ranging from software to financial services companies. CBRE argues this provides a diversified income stream, with lease expiries staggered over the next three years.
Rhett Williams, RG Property CEO, is excited by the medium and long prospects of the asset believing the Foritiyde Valley region is going from strength to strength.
“Securing this large landholding puts us and our investors in a strong position to capitalise on the continued growth in the Fortitude Valley market, which is emerging as a natural extension of the Brisbane CBD,” he said.
The $15.8 million acquisition was negotiated by Jack Morrison and Peter Chappale from CBRE in conjunction with Peter Court and Mike Walsh from Cushman and Wakefield.
Mr Morrison said the property’s uniqueness was a strong part of the sale campaign, noting buyers are interested in heritage assets as a way to diversify their portfolios.
“Assets such as 37 Kennigo Street, which offer a level of uniqueness and character, are in high demand as buyers seek to add a mix of asset types to their portfolios,” said Mr Morrison.
Mr Court remarked the sales follows a trend of enquiries from a variety of syndicates and investment clubs.
“We saw an increase in demand towards the back end of 2020, a theme that has increased in early 2021 and looks set to continue as buyers view the current market conditions with more certainty”