As the prime office market vacancy rate in the Brisbane CBD falls, the confidence in the city increases, seen recently in the purchase of 53 Albert Street for $250 million. The vendor in the sale, brokered by CBRE, was Challenger Life Nominees Pty Ltd.
Challenger Life is a subsidiary of Challenger Limited, an investment management firm which listed on the Australian Securities Exchange in 1987.
JP Morgan is reported as being the purchaser. JP Morgan is an American multinational investment bank and financial services company headquartered in New York City. JP Morgan was officially christened as such in 1895, and by 1900, it was one of the most powerful banking houses of the world and was the world's first billion dollar corporation. Today it has an estimated $2.5 trillion worth of assets.
According to Brisbane Cityscope, 53 Albert Street is a 24-level building re-developed from the 10-level Kings Parkade parking station at an estimated cost of $70 million in 2009. Levels 1 to 9 offer 580 car parks; levels 10 to 22 offer A-grade office space and level 23 is utilised as a plant room. With a net lettable area of 18,440 sqm, the building is occupied by numerous Queensland Government tenants.
The property last traded at $209 million in 2014. Apparently this sale at $250 million represented an initial yield of 6.40% on a passing income of approximately $16,000,000.