Cushman & Wakefield, jointly with Savills, today announced it has been appointed by the City of Brisbane Investment Corporation (CBIC) to sell a three-storey, A-grade commercial office building at 665 Fairfield Road, Yeerongpilly.
The purpose-built site was constructed in 2012 for long-term tenant, Brisbane City Council. It is being sold fully leased with a WALE of 8 years, and a further two x 5-year options to extend.
Located within 5.5km south of the Brisbane CBD, 665 Fairfield Road comprises 4,198 sqm of net lettable area across three levels, and 71 car spaces. The site is adjacent to major transport infrastructure, including the Yeerongpilly train station.
Cushman & Wakefield’s Joint Heads of Middle Markets QLD, Mike Walsh and Peter Court along with Nick Spiro, and Savills’ Peter Chapple and Gregory Woods will manage the on-market expressions of interest campaign on behalf of CBIC, due to commence on 1 April, 2019.
Mike Walsh, Joint Head of Middle Markets QLD, Cushman & Wakefield, commented: “665 Fairfield Rd is a significant opportunity for investors to secure a high-quality office building with income underwritten by a long-term lease to Brisbane City Council.”
“Located in an affluent and growing inner-city area, the property is also poised to benefit from major surrounding development activity. This includes Consolidated Properties’ $850m Yeerongpilly Green project which will include a Woolworths-anchored shopping hub and more than 55,000 sqm of commercial space.”
Peter Court, Joint Head of Middle Markets QLD, Cushman & Wakefield, commented: “We expect strong demand from local and offshore investors, as the market for properties with a minimised risk profile and AAA government-bond-like covenants remains highly competitive. Overall, the fundamentals of the Brisbane market remain positive and we continue to see aggressive appetite for well positioned commercial building with yields continuing to compress in testing cyclical lows.”
Peter Chapple, State Director, Capital Transactions, Savills, said: “With the site 100% leased to the Brisbane City Council it will attract interest from all investor types active in the Australian market.” Nick Spiro, Director, Commercial, Cushman & Wakefield said: “The strategic position directly adjoining a train station will appeal to investors that recognise the benefit of being situated near key
public transport infrastructure.”