Australian commercial property investment group Quanta Investment Funds has strengthened its growing portfolio with the acquisition of 23 Graham Street, Milton, marking the launch of the Quanta Graham Street Office Trust.
The transaction attracted significant interest and was fully subscribed with a $14.3 million equity raise, successfully closing with strong backing and investor confidence.
The closed-ended, single-asset trust comprises two commercial offce premises on a substantial 3,743 sqm landholding in one of Brisbane’s most established and tightly held fringe offce markets.
The combined 3,472 sqm lettable area is fully leased to two high-profile tenants – ADCO Constructions, one of Australia’s largest privately-owned construction companies with annual revenue exceeding $1 billion, and Bielby, a national civil engineering specialist.
Quanta Investment Funds Founding Director Stacey Jones said the fund’s latest trust is anticipating both strong rental growth and capital value uplift over the long term.
“We have every assurance in what this asset will deliver, backed by a strong investment forecast – an anticipated five-year investment horizon with a net distribution of 8.25% per annum in year one, rising to 9.25% by year five, paid monthly,” Jones said.
“The property was also secured well above average CBD purchase yields at 8.59%, with long-term upside further underpinned by strong tenant covenants and the strategic location offering long-term redevelopment potential.”
The Graham Street Offce Trust delivers a defensive income stream, anchored by a 3.65-year Weighted Average Lease Expiry (WALE) by income, with the first lease expiry not occurring until late 2028.
Jones added that the ideal timing of the transaction, and the asset’s fundamentals, position the trust strongly for growth.
“Brisbane’s CBD and fringe offce markets are experiencing the lowest vacancy rates in years, with Milton backed by excellent connectivity and tenant demand,” she said.
“The CBD fringe market is currently supported by the trifecta of face rents steadily rising, new supply constrained, and very few developments expected to come fully online before 2028.
“By targeting assets like Graham Street with secure income streams, strong fundamentals and long-term growth potential, we are continuing to deliver exceptional opportunities for our investors.”
The transaction underscores Quanta’s continued commitment to securing high-quality assets that deliver stable, long-term returns for investors. This includes Quanta’s management team which co-invests alongside its investor network, ensuring an alignment of interests in the Trust’s success.
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