The wonderfully located 164 Grey Street, South Brisbane has been sold for $44.65 million by Luke Billiau and Seb Turnbull of JLL Brisbane. The property is held on an exceptionally long term leasehold of 981 years.
The vendor was Marquette Moelis Grey St Trust, which was established to acquire 164 Grey Street on behalf of Moelis and Company. Moelis and Company is a global independent investment firm which is based in New York and was founded in 2007 by Ken Moelis and partners.
The purchaser, VennCap Real Estate, is an independent real estate advisory business which was established in 2009. It represents international and local investors across Australia and New Zealand.
164 Grey Street is a four-storey commercial building of 3,148 sqm with 38 basement car parks, ground floor retail space, three levels of offices above and a large rooftop entertainment area. Tenants include the Commonwealth Bank, the Spaghetti House Trattoria and Queensland X-Ray. The property adjoins South Bank Parklands, which is known for its beautiful green spaces, man-made swimming beach, bustling events program and incredible dining. It is a highly sought after area with a vacancy rate of 2.1% and, according to JLLL Brisbane, has ‘one of the lowest vacancy rates in any precinct in Australia’.
The leasehold of 164 Grey Street last traded at $30.3 million in late 2016. This sale at $44.65 million reflected a net passing initial yield of 4.92%.