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Heitman & Marquette buy in Brisbane

Global investment manager, Heitman LLC have partnered with Marquette properties to acquire 288 Edward Street Brisbane from Quadra Pacific for $115M.

The sale price represents a capital value of $5,757/sqm of NLA and compares to other recent transactions including 100 Edward Street which sold in August 2018 for $60M or $8,427/sqm and nearby 160 Ann Street which sold for $133M in mid 2017 for $8,313/sqm.

The Brisbane office market has seen a greater level of attention in the past year as Sydney and Melbourne assets become harder to secure. Since July 2018, ten major transactions have occurred in the Brisbane market worth $1.4Bn with an average cap rate of 6.19% and an average capital value of $9,645/sqm.

288 Edward Street is well-located, CBD B Grade office building offering 19,975sqm across 27 levels of office space, ground floor retail and one basement level of car parking. The building has a side core and an average floor plate of 688sqm allowing for flexibility in office and floor layouts.

Quadra Pacific, a Canadian company, acquired the asset, along with 133 Mary Street over 25 years ago and offered both assets to the market late last year.

Heitman have deployed a capital from their Heitman Asia-Pacific Property Investment platform which is a value-added, closed-end Asia-Pacific fund series, primarily partnering with local active managers. To date, Heitman have partnered with Abacus in the $170M acquisition of 1 King Street Fortitude Valley; with Elanor Funds on the $178M acquisition of Waverley Garden Shopping Centre from Blackstone, and with Fortius on the acquisition of the Brisbane Barracks for $162M.

Heitman have also sold out of a number of previous investments including 35 Boundary St, South Brisbane, 180 Queen Street Brisbane, and 32 Walker Street North Sydney, each with Abacus as a JV partner.

The latest transaction at 288 Edward Street was brokered by JLL.

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