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Fortitude Valley office tower expected to sell for $90m+

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Investec Australia Property Fund (‘Investec’) are bringing the 11-storey office building located at 757 Ann Street, Fortitude Valley, to market with an expected price guide of in excess of $90 million. The move is consistent with the statement made by Investec as part of its recent ASX listing that it would look to recycle capital.

Cushman & Wakefield’s Mike Walsh and Peter Court have been exclusively appointed by Investec to undertake an international expression of interest campaign which commences 14 October. The campaign is expected to generate strong interest from domestic and off-shore institutions, funds and syndication groups.

Completed in 2014, the state-of-the-art building comprises 9,422 sqm of A grade office space. The building is fully-leased with a weighted average lease expiry of approximately five years. The property’s strong income profile is supported by the anchor tenant - multi-billion dollar technology company, Asea Brown Boveri.

The building occupies a dominant corner position on Ann Street, one of Fortitude Valley’s main thoroughfares, and Morgan Street. Brisbane’s most renowned rooftop bar, Bar Eleven, is also located on the top floor.

The building is located just one kilometre from Brisbane’s CBD in the tightest-held Brisbane fringe market, the Urban Renewal precinct. According to Cushman & Wakefield research, vacancies in the area have dropped from 14.2% to 12.1% between January 2019 and June 2019.

Cushman & Wakefield’s Joint Head of Middle Markets, Peter Court, added: “The entire commercial component of the asset is structured on a net lease basis, providing smooth, predictable cash flow for investors. This, combined with the building being 100% leased, a multibillion
dollar blue chip anchor tenant, and a strong local office leasing market adds to the attractiveness for prospective buyers that are chasing diminishing yields in other asset classes.”

Cushman & Wakefield’s Joint Head of Middle Markets, Mike Walsh said: “757 Ann Street presents a benchmark near-city investment, offering highly desirable credentials for investors in Brisbane’s most sought-after mixed-use precinct.”

“Occupying a prime corner location on Ann Street with enviable sight-lines to the CBD, the striking A-grade tower was designed by Nettleton Tribe and completed in 2014 with no significant short term capex requirements.”

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Fergus Ross
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fergus.ross@6-degrees.com.au