Real estate investor and manager, Cromwell Property Group (Cromwell), has purchased 545 Queen Street, Brisbane on behalf of unitholders in the Cromwell Direct Property Fund (DPF or the Fund).
Acquired for $117.5 million, the A-grade office building is located on a 2,735 sqm parcel of land at the entrance to the Brisbane CBD’s ‘Golden Triangle’ with floor plates between 750 sqm and 2,138 sqm for a total net lettable area of 13,363 sqm. The building is 100% leased with a WALE of 4.2 years. Major tenants include Sonic Healthcare, Federal Government and Calibre Professional Services.
Cromwell’s Head of Retail Funds Management, Hamish Wehl, commented, “In the current interest rate environment, it’s challenging for investors to find opportunities that meet their income needs.”
“DPF provides monthly liquidity and currently offers a 5.8% yield, making it popular with investors looking for regular, reliable income. 545 Queen Street fits this profile with 88% of income derived from Government, listed or multinational tenant-customers,” he said.
“Cromwell is actively seeking additional assets that will help DPF meet its objectives and benefit unitholders even further.”
“There continues to be substantial opportunity to grow Cromwell’s retail funds management business and we are progressing opportunities to scale this business further,” he concluded.
The transaction was negotiated by CBRE’s Peter Chapple, Bruce Baker, Flint Davidson and Stuart McCann.
Peter Chapple, CBRE Senior Director, Capital Markets, said, “Following an extensive refurbishment programme, 545 Queen Street attracted a range of high quality occupiers, which is testament to the asset’s prominent location.”
Bruce Baker, CBRE Senior Managing Director, Queensland, said, “We have seen a strong increase in buyer demand for high quality, multi-let Brisbane office towers, with long-term investors backing that there will be a flight to quality as tenants seek to upgrade to prime grade CBD and metropolitan office assets.”
Across the last three years, a foyer upgrade and new end-of-trip facilities have been reflected in a 5.0-Star NABERS Energy rating.
The Fund now has exposure to ten high-quality office and retail assets across Queensland, New South Wales, Victoria, South Australia and ACT. For more information on DPF, please call the Cromwell Investor Services Team on 1300 268 078, or email firstname.lastname@example.org.