Cromwell sells near-city Brisbane office building for circa $41.5 million

Cromwell Funds Management, on behalf of the Cromwell Direct Property Fund, has sold a Brisbane near-city office building off-market to a local Brisbane investment group.

JLL’s Elliott O’Shea and Seb Turnbull handled the sale for 433 Boundary Street, Spring Hill, Queensland.

The deal, struck at just over $41.5 million, reflects a passing yield of approximately 8.09%, and demonstrates the ongoing demand for office in Brisbane, particularly for assets that have short to medium-term value-add opportunities.

The asset comprises a three-level office building that is fully leased to secondary education provider IES College, with approximately five years remaining on the lease.

It is situated on a prominent 3776sqm land holding and located just 1km from the Brisbane CBD.

Mr O’Shea said: “Elevated construction costs, partnered with the current cost of capital, are making new office development of any scale challenging. This, coupled with a buoyant leasing market, has led to double-digit rental growth, which is stoking investor interest and demand for counter cyclical office opportunities.”