The latest research from Brisbane Cityscope shows property sale figures have remained steady in the past three months. The last three months to the beginning of August 2019 recorded 13 sales for a total of $357.4 million, with $129.3 million for commercial, $3.5 million for commercial strata, $1.3 million for retail strata and $223.2 million for other.
In comparison, the last three months to the beginning of May 2019 recorded 12 sales for a total of $355 million, with $346.5 million for commercial, $6.1 million for commercial strata and $2.4 million for retail.
The 12 months leading up to the beginning of May 2019 recorded 63 sales for a total of over $2 billion, more than $22 million higher than the recorded figure for the same time period the year before.
The table below shows sales recorded for the past eight updates of Brisbane Cityscope:
The most significant sales recorded this quarter were:
- NEXT Hotel Brisbane, which fronts the Queen Street Mall, has been purchased for $150 million by Salter Brothers Hotel Group. The sale was negotiated by Tom Gibson and Simon Rooney of JLL Hotels & Hospitality Group. It represented an initial yield of 7.06% on a passing income of $10,585,047 (net). NEXT Hotel is a 304-room, 4.5-star hotel which was converted from a hotel/office building in 2014 at a cost of $50 million. The property last sold in 2015 for $133 million to Challenger Life Nominees Pty Ltd.
- Makerston House has been sold off-market for $87,243,968 to Sentinel Regional Office Trust. Luke Billiau and Seb Turnbull of JLL Brisbane negotiated the sale in conjunction with CBRE Brisbane. The sale represented an initial yield of 7.85% on a passing income of $6,848,651 (net). The 14-storey office building is situated at 30 Makerston Street and includes around 14,640 sqm of space and 179 car parks within five basement levels.
- 280 Elizabeth Street, a nine-level telephone exchange has been sold by Telstra Corporation Limited for $57 million to Firmus Capital Pte Ltd. Justin Bond and Matt Barker of Knight Frank Brisbane negotiated the sale which represented an initial yield of 5.58% on passing income of $3,180,600. The property was sold with a leaseback agreement in place.
Properties currently listed for sale include:
- Metro Arts Centre, 109 Edward Street
A five-storey, 2,796 sqm building tenanted by Metro Arts and Verve Restaurant and Cider House. For sale by expressions of interest, closing August 8, 2018; agent, JLL Brisbane (Seb Turnbull and Luke Billiau). Metro Arts plan to vacate the premise in 2020.
- The Victory Hotel, 127 Edward Street
A two-storey building with bars, a bistro, beer garden and first floor nightclub. For sale by expressions of interest, closing September 11, 2019; agent, Savills Brisbane (Tony Bargwanna).
- 348 Edward Street – the former IBM Centre
A 16-storey office building with a ground floor cafe. For sale by expressions of interest, closing August 28, 2019; agents, CBRE Brisbane (Flint Davidson, Adelaide O’Brien, Tom Phipps and Marc Giuffrida) and JLL Brisbane (Luke Billiau, Seb Turnbull and Stuart McCann). The property was advertised with a net passing income of $4,797,627 (as at December 1, 2019).
Properties currently under contract (conditional or unconditional) include:
- 400 George Street
A 34-storey office building completed in 2009. Due diligence is being undertaken; agents, CBRE Brisbane (Bruce Baker, Flint Davidson, Tom Phipps and Thomas Gnieser) and JLL Brisbane (Seb Turnbull and Luke Billiau). The property was advertised with a net passing income of $32,235,962 as at 1 October 2019.
- The Pavilion, 126-130 Queen Street
A three-storey, 3,771 sqm retail and office building. Under contract; agent, JLL Brisbane (Sam Hatcher, Seb Turnbull, Jacob Swan and Luke Billiau). The property was advertised with an estimated fully leased income of $4,458,169 per annum net.