Mount Gravatt ATO building sold again
US funds group LaSalle Investment Management’s recent profitable trade out of a Brisbane building to Charter Hall’s specialist listed long lease trust marked the latest in a series of trades showing the city’s fringe office markets are running hot.
The deal, announced as part of the recent raising by the Charter Hall Long WALE REIT, saw the listed fund purchase the tower for $63.6 million. LaSalle had picked up Mount Gravatt ATO office for $57 million in early 2016.
That deal showed an initial passing yield of just over 8% but the latest trade via JLL was struck at about 7.7%. The Commonwealth Government Building, located at 28 Macgregor St at Mount Gravatt, south of Brisbane, was purpose-built for the ATO in 1992.
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The complex was refurbished in 2012 and again in 2017/2018, with a 5-star NABERS Energy Rating and a 6-Star NABERS Water Rating. It is predominantly leased to the ATO with a remaining lease term of 7.1 years and 2.5% annual rent reviews. It also has 405 car parking bays.
LaSalle bought the value-add and opportunistic assets for one of its Asian funds, achieving a healthy return on the 28 Macgregor Street site that also has future development potential.
The property is a fully leased, six-level, A-grade office building with a total net lettable area of 14,286sqm and 401 car parking bays.
In other plays the TCB on Brunswick in Fortitude Valley was bought for $117.5 million by AMA APAC (Qld) TCB.
A Harmony syndicate bought 6 Gardner Close in Milton for $25.23 million in a deal brokered by Christian Sandstrom, Matt Barker and Justin Bond of Knight Frank, and Glen Wright and Nick Spiro of Cushman & Wakefield.
Desin Group Australia also picked up the Punthill Brisbane Apartment Hotel on Astor Terrace in Spring Hill for $17.96 million.
This article originally appeared on www.theaustralian.com.au/property.