Deka Immobilien has been confirmed as the buyer for 66 Eagle Street Brisbane in a deal worth $380m.
The vendors, Lend Lease and ADIA offered up a 100% stake in the building following ADIA's decision to offload their 50% interest. Lendlease's APPF Commercial held a pre-emptive right to acquire ADIA's 50% stake and lift its exposure to the Brisbane market, but chose not to do so.
The iconic 31,896 sqm building in the heart of Brisbane’s ‘Golden Triangle’ sits on a 2,510 sqm land holding. THe building was recently renovate with a new premium lobby, cafe and End-of-Trip facilities. The building has 1400sqm floor plates around a central core and is leased to a national and international tenants including QIC, McCullough Robertson, Mills Oakley and a range of state and commonwealth government departments. The property generates approx $20.2M pa in net income and secured by a 3.94 year WALE.
The building was offered to the market via JLL and Cushman Wakefield with Charter Hall, GPT, Abacus and Deka each hoping to secure it. The price of $380m reflects a passing yield of 5.3% and a capital value of $11,914/sqm.
The German funds manager has been active in Australia. In February 2019, it acquired a majority strata interest containing the Bvlgari store in the heart of Sydney, in a deal worth about $58m and also backed Armada Funds Management’s purchase of a Canberra shopping centre for $135m. Deka also own 15 William Street, Melbourne.
The deal completes a busy 2019 for the Brisbane office market, with over $3.1bn of transactions including the acquisition by Cromwell of 400 George Street for $525M, the acquisition by Shayher of 141 Queen Street for $395m and the sale by Oxford of 6 assets worth $760m.
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