Centuria Add 348 Edward Street Brisbane
Centuria have acquired 348 Edward Street Brisbane from the Hines Group for $89m.
The A-Grade asset is only 89% occupied with a range of tenants offering a 5.1yr WALE. The building was recent upgraded with improvements to the lobby, EOT and plant and equiptment however it has retained a 2.0 NABERS Energy Rating.
Hines acquired the asset in December 2016 for $49m (an equivalent yield of 8.53%), knowing that IBM (who leased for 70% of the building) would be vacating the property.
The Centuria deal reflects an equivalent yield of approximately 6.5% and delivers Hines Group a $40m capital gain over the past 3 year holding period.
Centuria will house the asset in a new unlisted fund which aims to deliver a distribution yield of 6.25% in FY20.
The Brisbane market has seen $1.3bn of office deals in 2019 including, 140 Creek Street at $257m, 310 Ann Street at $220m and 295 Ann Street at $150m.
The Edward Street asset was sold via CBRE and JLL.