Brisbane commercial property sales on the rise in 2017: Cityscope

Brisbane property sale numbers have increased slightly in the past three months and sales figures have significantly increased, according to research from CoreLogic’s Brisbane Fringe Cityscope.

The property data firm says that the last three months to the beginning of February 2017 recorded 37 sales for a total of $313.1 million.

This consists of $262.6 million for commercial, $3 million for commercial strata, $3.5 million for retail, $7.4 million for retail strata and $36.7 million for other.

In comparison, the last three months to the beginning of November 2016 recorded 31 sales for a total of $88.8 million.

This consists of $4.6 million for commercial, $9.9 million for commercial strata, $1.6 million for retail, $66.9 million for retail strata and $5.8 million for other.

The 12 months leading up to early February 2017 recorded 128 sales for a total of more than $728.2 million, over $80 million more than the same time last year.

The table below shows sales recorded for the past eight updates of Brisbane Fringe Cityscope:

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Together the top sales recorded this quarter total over $181 million, these sales include:

• Kings Row Office Park, 40-52 McDougall Street, Milton, comprising multiple office buildings between two and six storeys and over 400 car parks, was bought for $94.9 million by Shayher Alliance Pty Limited. The buildings were constructed between 1989 and 1996. Anthony Ott and Peter Chapple of Savills Brisbane negotiated the sale.
• 33 Park Road, Milton, a four-storey office building, was sold with a residential building at 14 Gordon Street (not covered by Cityscope) for $48.2 million to Wholesale Australian Property Fund. The sale represented an initial yield of 7.37% on passing income of over $3.55 million. Peter Court and Mike Walsh from JLL Brisbane sold the property in conjunction with Seb Turnbull and Luke Billiau of CBRE Brisbane.
• 200 Creek Street, formerly known as Medtronic House, a 10-storey office building with basement car parking, sold in January 2017 for $38.7 million to Sentinel Regional Office Trust. The sale represented an initial yield of 9.58% on passing income of over $3.7 million. Luke Billiau and Seb Turnbull of JLL Brisbane sold the property in conjunction with Peter Court and Mike Walsh from JLL Brisbane.

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Properties for sale include:

• 337 Water Street, Fortitude Valley – a two-storey, 320 square metre office building with six car parks. For sale with an asking price of $1.65 million; agent, Cushman & Wakefield Brisbane (Sam Callanan and Michael Gard).
• 12 Cribb Street, Milton – a five-storey office building with basement car parking. For sale by expressions of interest; agents, Savills Brisbane (Peter Chapple and Nick Russell) and JLL Brisbane (Christian Sandstrom and Sam Bryne). The property was initially advertised with an approximate fully leased income of over $1.55 million net (as at December 1, 2016)
• John Oxley Centre, 337A Coronation Drive, Milton – a U-shaped building with five storeys of offices and two levels of basement car parking for 319 vehicles. For sale by expressions of interest; agents, JLL Brisbane (Seb Turnbull and Geoff McIntyre) and CBRE Brisbane (Bruce Baker and Flint Davidson).

Properties under contract (conditional or unconditional) include:

• Green Square South Tower, 505 St Pauls Terrace, Fortitude Valley – a four-storey building with ground floor retail space and upper level office space. Due diligence is being conducted by AXA Investments Managers; agents, Colliers International Brisbane (Tom Barr and Don MacKenzie) and Colliers International Melbourne (John Marasco).
• 164 Wharf Street, Spring Hill – a three-level office building comprising two levels of offices above ground floor car parking. Under conditional contract; agent, Savills Brisbane (Jack Morrison and Nick Russell).
• 100 McLachlan Street, Fortitude Valley – a four-storey commercial building completed in late 2013 as stage 3 of the M&A development. Under contract for $30 million to an offshore purchaser; agent, Cushman & Wakefield (Nick Spiro). The sale represented a yield of 6%.