Axis Capital Flips Former Flight Centre HO5 May 2021
Axis Capital have successfully sold the former Flight Centre Head office in Brisbane to a Cromwell managed Fund for $117m.
The property at 545 Queen Street Brisbane sits on an island site in the northeastern fringe of Brisbane’s financial precinct offering 13,100sqm of A Grade space over 10 levels.
Axis Capital paid a GPT unlisted fund $70m for the building in 2017 in the knowledge that Flight Centre would vacate the property, leaving it 70% vacant.
Axis Capital refurbished and repositioned the building over 6 months and leased up the vacant space over a 6 month period to Sonic Healthcare, CSG International, South 32, Calibre, Bentley Systems and McPherson Group. The new leases have been signed at gross rents ranging from $600 per sq m to $625 per sq m on long lease terms of up to 10 years. The property is now 100% leases with a WALE of 4.1 yrs.
The sale to Cromwell is reported to represent a yield of 5.9%.
The property will sit in the Cromwell Direct Property Fund, a retail fund which currently offers a 5.8% distribution yield from a portfolio of 9 assets. The latest product report from DPF (see below) indicates that the income return was 6.1% and the total return for the 12 months to 31 March 2021 from the fund was +3.9% as a result of capital revaluations to the portfolio taking -5.9% off the value of the assets.
The transaction was negotiated by CBRE’s Peter Chapple, Bruce Baker, Flint Davidson and Stuart McCann.
See the current Product Flyer below.
Disclaimer: The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.