Cornerstone Properties appear to have finally succeeded in their fix and flip strategy of 310 Ann Street Brisbane.
The Group acquired the property with JV partner FA Pidgeon & Son for $63m in 2012. At that time, Suncorp fully occupied the building but vacated in 2015, leaving an opportunity to create a more contemporary product for the current market.
Cornerstore Properties appointed Hutchinson to strip back the building to its skeleton, and completely redefine the asset at a cost of circa $60m. Works included expanded floors plates (from 970sqm to 1,147sqm), new ceiling heights, new floor-to-ceiling glass facade, new amenities, a new 13-metre-high foyer, new streetscape and awnings.
The 20-level tower provides a net lettable area of 18,362 sqm and benefits from a 5.5-star NABERS Energy rating.
Cornerstone Properties secured new tenants including Allianz Worldwide Partners and the Queensland government.
A sale of the asset to a UBS client was announced in May 2019 for $220m however that sale did not proceed. CBRE’s Bruce Baker, Flint Davidson and Peter Chapple together with JLL’s Seb Turnbull and Paul Noonan introduced AsheMorgan to the property and concluded a deal at $210m on behalf of Cornerstone.
The sale price reflects an initial yield of circa 5.5% and confirms the ongoing investor interest in well leased commercial assets in core CBD locations.
Ashe Morgan invested heavily in Brisbane in 2017 – 2019 with $500m of acquisitions, including 295 Ann Street, 140 Creek Street and 232 Adelaide Street, all part of the Oxford portfolio.
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