Aware’s splashed $150m with plans to rejuvenate The Barracks precinct in Brisbane

Aware Real Estate and Navigator Property are planning to rejuvenate The Barracks precinct in Brisbane.

Superannuation fund-backed Aware Real Estate is planning to rejuvenate The Barracks precinct in Brisbane after snapping it up for close to $150m, betting it can ride the surge in residential development and a kick from Olympics-related spending.

The city’s real estate market is being transformed as developers and landlords buy assets that will benefit from the Brisbane 2032 Olympic Games, with the focus on restoring the Petrie Terrace precinct back to its former glory in time for major events.

The move is the latest by Aware Real Estate, which last year signalled its faith in the city’s ­offices market by picking up a major tower in Brisbane’s CBD from a venture run by heavyweight Dexus for $215.5m.

Aware Real Estate head of investments and capital transactions Pete Carstairs said The Barracks was the type of strategic, high-quality urban asset that aligned with the group’s long-term investment strategy.

“It ­offers immediate income and a clear opportunity to unlock further value through active asset management,” he said.

“We really like the Brisbane market’s fundamentals across all asset classes. There is the chance to reinvigorate it; it’s a really well-leased asset but there’s a little bit of work to do with the food and beverage precinct in particular.”

The Barracks precinct in Brisbane.

Tom Phipps and Ken Neufeld from Navigator Property Group provided strategic advice to Aware Real Estate on the latest transaction – as well as that earlier purchase of 145 Ann Street – and will keep working with the group to drive long-term performance.

The pair is seeking to reposition the asset ahead of the Games and will eventually relaunch it as one of the city’s top dining destinations.

“The Barracks is strategically positioned to benefit from major residential and infrastructure projects in the lead up to the Brisbane 2032 Olympic Games,” Mr Phipps said. “There are over 2100 hotel, residential and build-to-rent units being developed within a 300m radius of The Barracks as well as major infrastructure projects, including Brisbane’s ‘Grand Central’ Cross River Rail Station, the new Victoria Park Olympic Stadium and the recently announced Suncorp Stadium upgrade.”

Sitting on an elevated 1.09 ha site on the western edge of the Brisbane CBD, The Barracks is set to benefit from these surrounding infrastructure developments, which will drive performance even after the Olympics.

The premium mixed-use precinct on the historic police barracks site was developed by Property Solutions at QM Properties in 2008 as a landmark retail and commercial precinct.

The project integrated three of Brisbane’s key heritage-listed buildings with contemporary architecture and last traded in 2018 when it was picked up by Fortius Funds Management from financial services company Challenger for about $162m.

Growthpoint acquired Fortius Funds Management in 2022 and the unlisted trust was coming to the end of its life.

The 19,433sq m centre comprises five separate buildings with a shopping precinct anchored by a Coles supermarket and Palace Cinemas, complemented by 23 food and beverage and retail specialties, along with modern offices.

The office tower is A-grade standard and the complex includes 451 car bays.

The complex was sold by JLL’s Paul Noonan and CBRE’s Bruce Baker and their teams.

The Barracks has top ESG credentials, with a 6-Star ­NABERS energy base building rating and a 6-Star NABERS water rating across the modern and heritage office buildings; it hosts a 335kW rooftop solar installation supporting peak load reduction.

Aware Real Estate chief executive Tracey Whitby said there was an opportunity to enhance the retail experience, improve the already high quality-office space, and partner with experienced local operators to elevate the asset’s performance.

“This acquisition further diversifies our national portfolio and reinforces our commitment to investing in vibrant, well-connected urban precincts,” she said.

Aware Super’s head of property Alek Misev said Aware Real Estate had a property portfolio valued at more than $2bn. “We’re focused on opportunities like The Barracks that combine resilient income streams with value-­creation potential,” he said.