Aviator swoops in for $37m Brisbane office block
Centuria Capital has continued its busy week of dealmaking, selling an office block in Brisbane’s inner-city suburb of Cannon Hill to Sydney-based syndicator Aviator Capital for $36.95 million.
The group sold 19 Corporate Drive in Southgate Corporate Park after a campaign that demonstrated the strong demand for Brisbane A-grade office assets from local and offshore buyers.
Centuria head of real estate Jason Huljich says the property was purchased in 2012 for $23.3 million and the fund’s investment rationale had been to provide investors with stable, high-yielding and diversified income returns.
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The Centuria fund in which the building was held yielded an average income return to investors of about 10.3% over the past 6.5 years.
The sale was negotiated by Matt Barker, Justin Bond and Christian Sandstrom of Knight Frank, and Anthony Ott and Peter Chapple of Savills.
The purchase was Aviator’s third property acquisition in Brisbane. It also owns 240 Waterworks Rd at Ashgrove and 77 Hudson Rd at Albion.
Southgate Corporate Park houses National Australia Bank, Optus, Holden, Endeavour Foundation, Honeywell and the Queensland government.
Bond says investors were drawn to the solid tenant covenants, along with the appeal of the Cannon Hill precinct.
Chapple says investors recognised there was significant underlying demand for users of business park assets.
The property comprises 6028sqm of net lettable area over two levels of office space, with on-site parking for 145 vehicles.
This article originally appeared on www.theaustralian.com.au/property.
