Heritage-listed office on edge of CBD sells for more than $28m

In a sign of the strength of the office market’s recovery from the pandemic, a heritage-listed commercial building in Brisbane has been sold for $28.65 million.

The Willoughby & Co Woolstores in Tenerife was sold from an unlisted fund managed by Centuria Capital Group subsidiary Primewest to Vantage Property Investments. It marks the company’s first move into the Brisbane office market.

The building was last sold in 2018 for $19 million and the remarkable price jump is a sign of recovering confidence in the office sector after the worst years of the pandemic, according to PropTrack economist Anne Flaherty.

“What really stands out to me is that if we go back to the start of this pandemic, a lot of pundits were saying that this is the end of the office,” Ms Flaherty said.

“Businesses won’t want to work want to work from offices anymore. What we’ve seen is that that hasn’t turned out to be the case.

“The fact that we’ve seen a property sell pre- to post-Covid and generate such an enormous profit really shows the strength of the recovery of investors in their confidence in the office sector.”

The sale was managed by CBRE agents Jack Morrison and Adelaide O’Brien on behalf of the vendor, along with Cushman & Wakefield’s Mike Walsh, Peter Court and Frederic Le Fanue.

Heritage-listed assets in hip hoods are valuable

The building’s rich history was a factor in the acquisition, according to Vantage Property Investments managing director Matt Spring.

“We were attracted to the point of difference in the character of the Willoughby and Co. Woolstores and strongly believe in the occupier demand for assets of this nature,” Mr Spring said.

“Vantage has some exciting plans for the property that we believe will add significant value for our investors, really harnessing the heritage attributes and identity of the building.”

The interior of the building has been modernised and 97% of it is currently occupied by NOVA FM. Picture: realcommercial.com.au/sold

Brisbane’s NOVA FM is the lead tenant in the 4097sqm office and retail building, which also lists Screen Queensland, Accent Brands and Mainbrace Constructions as tenants.

The A-grade property has a four star NABERS energy rating and is on a 1710sqm landholding.

The property’s location in the now-affluent suburb of Tenerife was also a factor for Vantage, according to director of acquisitions and investments Paul Henley.

“The office market has seen a shift towards quality office accommodation in key locations,” Mr Henley said.

“The Brisbane near-city Teneriffe urban renewal precinct is one of the most desirable areas with the riverfront suburb being amenity rich and within walking distance of the CBD.

“It is a location Vantage expects will continually grow and thrive in a city we believe has an extremely strong future.”

Creative businesses are often attracted to heritage properties like the one at 130 Commercial Road as they are in neighbourhoods on the edge of CBDs that are seen as hip and exclusive, Ms Flaherty said.

“If you look at the location of the property in Tenerife, it’s just outside of the Brisbane CBD. And we know that often creative industries are looking for a central location, but they’re not necessarily looking for a heart of the city sort of a location.

“Tenerife is one of Brisbane’s most exclusive suburbs. Residential property prices in Tenerife are extremely high. It’s one of the most expensive suburbs.”

Woolstore’s character a reminder of Brisbane’s trading past

Built in 1940, the commercial building was originally created for Willoughby & Co, Importers & Investors to store wool.

It was part of Brisbane’s exporting infrastructure, which by the late 1940s was worth £20 million.

The Willoughby & Co Woolstores is one of several former industrial wool storage buildings that remain standing in Tenerife as a reminder of Brisbane’s trading past. Picture: realcommercial.com.au/sold

The citation for the building on the Brisbane City Council heritage register said: “It is illustrative of the importance of the wool industry to Brisbane and Queensland in the first half of the 20th Century.”

The building was one of a number of woolstores built in the area between 1910 and 1950.

It is one of the few to have been converted into a commercial property. Most of the other remaining woolstores in the precinct have been converted into residential apartment buildings.