US firm dives into $115m Brisbane tower
US real estate investment management firm Heitman has struck up a joint venture with Marquette Properties to buy a Brisbane office tower from private Canadian investor Quadra Pacific for about $115 million.
The pair acquired 288 Edward St and will now undertake a repositioning of the office building, including substantial ground floor and podium work, as well as upgrading the asset’s facade.
JLL’s Seb Turnbull and Luke Billiau brokered the deal that was flagged by The Australian last year.
Commercial Insights: Subscribe to receive the latest news and updates
The tower sits in the heart of Brisbane’s central business district and spans more than 8,000sq m of office space and about 1,500sq of retail space across two floors with prime frontage on Edward Street.
“We are pleased to add 288 Edward St to our pan-Asia-Pacific investment portfolio,” says Brad Fu, Heitman senior vice president and director of Asia-Pacific acquisitions.
“The asset’s irreplaceable location provides a compelling repositioning opportunity in the core of Brisbane’s CBD, which is benefiting from a strong revival in leasing demand, an expanding Queensland economy, and growing international investment interest,” he says.
Heitman also bought the Brisbane Barracks in a joint venture with Fortius Funds Management, in a $162 million deal finalised last month. That retail and commercial mixed-use property includes a restaurant, retail, cinema, office space, and parking across five buildings located next to Roma Street station.
In the past 12 months, Heitman has acquired more than $700 million of property along the eastern seaboard. “The investments in these Australian assets over the past 12 months provides our Asia-Pacific mandates, both for separate accounts and our dedicated fund, strong diversification across both property type and geography,” says Skip Schwartz, Heitman managing director and head of Asia-Pacific private equity.
“We continue to construct our Asia-Pacific investment portfolios through strategies that are de-linked or less linked to market volatility and supported by ongoing shifts in cyclical and structural trends.”
Heitman’s Australian assets include holdings in office, industrial, retail, mixed-use, and purpose-built student accommodation.
This article originally appeared on www.theaustralian.com.au/property.