410 Queen Street Sells to Locals on 5.8% yield

3 March 2020

A B Grade building on the edge of the golden triangle has sold for $53.5m to local investment group PGA Properties.


The property has an NLA of just 5,704 sqm and is leased to a range of with long standing occupiers from government, medical and legal sectors with a weighted average lease expiry of 2.8 years. The building has benefited from $5.8m of recent refurbishment works which has assisted to lift the building to a 5 Star NABERS Energy Rating.


The property was acquired on an initial yield of 5.8% and equates to $9,379/sqm of NLA. This compares to nearby 308 Queen Street, a 4,501 sqm building which traded in December 2019 to the University of Queensland at $10,531/sqm


The Vendor, RG Property acquired 410 Queen Street in 2011 for $28.8 million and repositioned the asset as a "boutique A-grade building", though would not meet the minimum floor plates sizes to qualify as true A Grade space.


The property is near Charter Hall and Investa's proposal redevelopment of 360 Queen Street Brisbane which is set to create a new benchmark in office space in Brisbane, featuring 45,000sqm of office space with tiered sub-tropical landscaped terraces, mid rise sky parks, a large ground floor public podium, retail marketplace, supermarket, indoor sport, recreation and child care facilities.