Civil Aviation Safety Authority Brisbane headquarters sell for $23 million
The Civil Aviation Safety Authority’s national operations headquarters at the Brisbane Airport has been bought by The Patella Group for $23 million in an off-market transaction.
The price reflects a market yield of nearly 8.3 percent, according to selling agents Colliers International.
It also acquired Aviation House in Canberra, which is also occupied by CASA, from Mirvac in 2016 for $68.1 million.
The PCA A-Grade building at Brisbane Airport is fully leased to CASA for another 2.5 years, with a further five-year option. It spans 4,675 sqm.
The 12-14 The Circuit Brisbane Airport is situated within the Skygate precinct - a retail precinct brimming with fashion, food and leisure.
In all, it has more than 160 retail stores, cafés and diners including DFO, Woolworths, Golf Central BNE, Dan Murphy’s, a 4.5 star hotel, medical centre and childcare.
The building was developed in 2007, and comprises four levels of office space, a ground-level foyer, and basement parking.
The base building currently has a 5.0 star NABERS Energy rating.
Brisbane Airport Corporation Pty Limited purchased Brisbane Airport from the federal government in 1997 under a 50-year lease with an option to renew for a further 49 years. BAC retains ownership and control of the airport in its entirety for the duration of the lease term up to 2096.
It will invest $3.8 billion in projects over the next decade including the New Parallel Runway, new car parks and access facilities, terminal expansions, road upgrades, and new aprons and aeronautical facilities.
The sale was negotiated by Colliers on behalf of Garda Diversified Property Fund.
Tom Barr of Colliers International said there was strong interest from institutions, privates, and syndicators.
“Buyers were attracted to high tenant retention probability due to the “stickiness” of the tenant to the location and building. The rapid growth of the Brisbane Airport precinct underpinned by nearly $4 billion of planned infrastructure investment over the next decade, was also very appealing to buyers” he said.