A private investor has successfully acquired a brand new commercial asset in Brisbane Technology Park (BTP), solidifying its position as Brisbane’s largest and most prestigious business park. The investor purchased the property from Business & Technology Precinct developer, Graystone, for $23 million, equating to an initial yield of 6.49 percent.
Situated at 5 Miles Platting Road, this brand-new facility comprises an impressive 2,973sqm* of Net Lettable Area (NLA) on a 2,503sqm* site, strategically positioned just 15 minutes from the heart of the Brisbane CBD.
The property includes 100 dedicated car spaces and features a newly secured 10-year whole-of-building net lease to Anglicare, an integral arm of the Anglican Church dedicated to providing essential community services to Southern Queensland.
The deal, negotiated exclusively by Mike Walsh and Peter Court of Cushman & Wakefield, marks their third suburban office park transaction this year alone. Their successful portfolio now exceeds $55 million in transactions, including the recent sales of 35 Miles Platting Road, BTP ($13.55 million) and 381 Macarthur Avenue, BTP Northshore Hamilton ($18.5 million).
Mike Walsh, Cushman & Wakefield’s Director & Joint Head of Middle Markets QLD commented on the continued success of suburban office park transactions, "These deals reaffirm the outperformance of these parks, attributed to the cost-effective value proposition they offer, compared to immediate inner-city options. Additionally, the above-average car parking ratios and strategic access to major transport nodes further contribute to their appeal.
“Clearly there has been a material shift in pricing over the course of this year, however the yield achieved on this deal highlights the fact that capital remains drawn to assets underpinned by blue chip covenants and long tenure when you consider where the current 10 year bond rate sits and the relevant risk premium investors would typically apply to direct real estate”.
As 2023 draws to a close, private buyers continue to dominate the market, with the purchaser of this asset being a local family syndicate. Mr Walsh added "This buyer, in particular, is a returning client, having acquired another property from us earlier in the year. It underscores the thematic that private investors are looking to capitalize on a thinner buyer market with the majority of listed groups focused on rebalancing their portfolios with divestments.”
