Commercial property sales in Brisbane's fringes rise, but deal count down: CoreLogic

Commercial property sales in Brisbane's fringes increased in the past three months but sales figures dropped, according to latest research from CoreLogic.

The last three months to the beginning of August 2016 recorded 24 sales for a total of $195.3 million, with $3.9 million for commercial, $3.2 million for commercial strata, $5.3 million for retail, $4.2 million for retail strata and $178.7 million for other, according to the latest Commercial Market Update – Brisbane Fringe Cityscope.

In comparison, the last three months to the beginning of May 2016 recorded 44 sales for a total of $139.1 million, with $56.3 million for commercial, $3.2 million for commercial strata, $54.5 million for retail, $4.6 million for retail strata and $13 million for other. The 12 months leading up to early August 2016 recorded 136 sales for a total of more than $772.4 million, over $107 million more than the same time last year.

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Together, the top three sales recorded this quarter total over $183 million:

• The 900 Ann Street development in Fortitude Valley has been presold for $169.82 million to Charter Hall Direct Office Fund and Charter Hall Prime Office Fund. The sale represented an initial yield of 6.50% on passing income of $11,038,300. The sale was negotiated by Seb Turnbull and Geoff McIntyre of JLL Brisbane. 900 Ann Street will comprise a 15-storey office building with ground floor retail/restaurant space.
• The Tivoli, 52 Costin Street, Fortitude Valley, a single-storey Art Deco style building originally built in 1917. Bought for $8.3 million by Parkedge Holdings Pty Ltd as trustee for SBS N02 Trust. Hunter Higgins and Pat George of Colliers International Brisbane negotiated the sale in conjunction with Michael Gard and Nick Spiro of Cushman & Wakefield (Qld).
• The GPO Hotel, 740 Ann Street, Fortitude Valley, was sold for $5.25 million to 740 Ann Street Pty Ltd. The sale represented an initial yield of 6.5% on a passing income of $341,106 (net). Daniel Dragicevich, Glenn Price and Darren Collins of CBRE Hotels and CBRE Brisbane negotiated the sale.

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Properties for sale include:

• 134 Brunswick Street, Fortitude Valley – a 430 sqm vacant block of land. For sale with an asking price of $1.7 million; agent, Richardson & Wrench Commercial Brisbane North (Kenneth King).
• 211 Leichhardt Street, Spring Hill – a St Pauls on Leichhardt Tavern, recently reconfigured for office use. For sale by private treaty in August 2016; agents, Chesterton International (Jeff Dolan) and CBRE (Darren Collins).
• 123-127 Gotha Street, Fortitude Valley – a three-storey office building with basement car parking. For sale by private treaty; agent, JLL Brisbane (Christian Sandstrom and Sam Bryne). The property was originally advertised with a net income of $861,378 per annum (as at 1 Nov 2015) with fixed annual increases of 4%.

Properties under due diligence:

• Kings Row Office Park, 40-52 McDougall Street, Milton – a mixture of office buildings ranging up to six-storeys. Due diligence is currently being undertaken; agent, CBRE (Bruce Baker and Flint Davidson) and JLL Brisbane (Seb Turnbull and Geoff McIntyre).
• 2-4 Dorsey Street, Milton – a two-storey weatherboard building. Due diligence is currently being conducted; agent, Blue Commercial (Tony Pagano).
• 505 St Pauls Terrace, Brisbane – Green Square South Tower, a four-storey office building with ground floor retail space. Due diligence is currently being undertaken; agent, Colliers International Tom Barr, Don MacKenzie

Cityscope covers 28 predominantly capital city CBD markets across Australia and New Zealand, providing a rich level of property level data including building attributes, tenancy detail, sales and ownership.