QIC to offload Brisbane office tower

Funds manager Queensland Investment Corporation has put its Brisbane office tower at 41 George St on the market, with predictions the building will sell for up to $150 million.

The property, which is located at the gateway to the proposed $2 billion resort and casino precinct Queens Wharf, is set on a 2811sqm elevated corner site and includes a 27-level commercial office building providing 29,960sqm of net lettable area.

The Queensland Government is the major tenant, bringing in a net passing income of $13,939,713 per annum.

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Chesterton International director of corporate sales, Ken Lucht, says strong interest has already been received from both onshore and offshore groups.

This asset is unique to any other CBD offering currently on the market as it provides a combination of secure income from a government tenant and considerable potential for future upside

“The property is included in the Queens Wharf Priority Development Precinct, which when completed in 2022 will be Brisbane’s most dynamic entertainment lifestyle location.”

Queens Wharf is a multi-billion dollar integrated tourism, public infrastructure and residential development project set on the Brisbane river, with site works anticipated to commence in 2017.

QIC bought the tower at 41 George St just two years ago. Picture: Google Maps

Colliers International national director of capital markets investment services, Tom Phipps, says the lease to the State Government provides exceptional cash flow security until 2021.

“This asset is unique to any other CBD offering currently on the market as it provides a combination of secure income from a government tenant and considerable potential for future upside,” Phipps says.

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“It is interesting to note that the State of Queensland initial lease term expires within 12 months of the scheduled opening of the Queens Wharf in 2022.”

Colliers International national director of capital markets investment services, Jason Lynch, says opportunities to acquire major assets with a weighted average lease expiry in excess of five years will be rare for the next few years due to the current CBD market being so tightly held by long-term investors.

The building’s floor plate of 1021sqm has potential for adaptive reuse to hotel, student accommodation and residential apartments

“In addition to this, the building lends itself to a range of redevelopment and value add options. These include office refurbishment, adaptive reuse and further development,” Lynch says

“The building’s floor plate of 1021sqm has potential for adaptive reuse to hotel, student accommodation and residential apartments.”

The property is being marketed by Phipps and Lynch of Colliers International and Shaun Douglas and Lucht of Chesterton International, via an international expressions of interest campaign that commences this week.