A 100% stake in the new generation, State Government-occupied office tower at 53 Albert Street in Brisbane’s CBD is going to market, with offers in excess of $300 million anticipated.
The prime-grade complex occupies a strategic 2,322sqm corner in the centre of the Brisbane CBD, straddling the city’s financial core and government precinct.
With major infrastructure and development projects underway – including the Cross River Rail Albert Street Station across the road and the Queen’s Wharf development within 250m of the asset – 53 Albert Street is positioned to benefit from more than $12 billion of nearby projects.
The 22-storey tower has a WALE of 6.5 years by income. The Queensland State Government occupies all 12 floors of office space, accounting for 18,694sqm, on a lease running through to January 2028.
Nine levels and 531 bays of car parking sit below that, leased by First Parking until October 2030, while the 365sqm of ground-floor retail space is occupied by Budget Car Rentals, Avis, BWS and café operator Atomic Albert.
CBRE’s Bruce Baker, Flint Davidson and Stuart McCann have been appointed to manage the sale campaign, with Expressions of Interest invited before March 31.
“With limited opportunities around the country to acquire 100% stakes in new generation, prime-grade CBD office towers, we expect strong interest in 53 Albert Street from onshore and offshore capital,” Mr Baker said.
“The asset has been occupied since inception by the Queensland State Government, which recently re-committed to an additional six-year term, highlighting the tenant’s strong commitment to the strategic asset and location.”
The building has a 5.5 Star NABERS Energy Rating and a 4.5 NABERS Water Rating.
Its award-winning design by nettletontribe Architects features a centre core, large 1,470sqm, column-free floor plates and offers excellent natural light and elevated views towards the Brisbane River and City Botanic Gardens.
With frontages on Albert and Margaret Streets, the tower is within 450 metres of Parliament House and 1 William Street, with more than 60% of Government-occupied space in Brisbane within a 500m radius.
Brisbane’s core financial precinct, the Golden Triangle, is less than 200 metres away, while the Albert Street station on Brisbane’s future Cross River Rail network will be directly opposite.
The Queen Street Mall, Botanic Gardens and the Eagle Street Pier and Queen’s Wharf development on the river are also just minutes away on foot.
“Situated in a central location straddling the financial core and Government precinct of the Brisbane CBD, 53 Albert Street benefits from a core location with an amplified future offering underpinned by more than $12 billion of infrastructure pipeline being injected into the surrounding precinct,” Mr Davidson added.
“The new Cross River Rail, Albert Street Station will revolutionise connectivity for tenants of 53 Albert Street as the new underground station becomes the main public transport access point for the southern part of the CBD.”
With approximately 67,000 people expected to use Albert Street Station each weekday by 2036, the new inner-city station will fundamentally change how people move around the city.
Further Information
53 Albert Street is owned by JP Morgan who acquired the building from Challenger Life in July 2018 for $250m. The reported yield for that transaction was 6.4% and the rate per NLA was $13,889/sqm.
In October 2021,Cromwell paid ISPT $184.7m for 100 Creek Street, a 20,223sqm building reflecting a 5.4% yield and $9,133/sqm and in July 2021, Charter Hall acquired the much larger 275 George Street for $275m on a 5.0% yield and $8,041/sqm.
If the property is to be sold for c$300m, the sale would represent $15,521/sqm, one of the highest rates per metre for a property transaction in Brisbane. Several of the prime Dexus buildings are valued in excess of this.
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