Australian based funds management company Aviator Capital has purchased a riverside office asset in Brisbane’s fast-changing North Quarter precinct from Kyko Group for circa $50 million.
The 10-level CBD office tower is in a prominent corner location at 193 North Quay and comprises approximately 7,631sqm of net lettable area including ground floor retail tenancies and one level of secure basement parking.
Regarded as a business destination for smaller corporates, the tower offers a strong diversified cash-flow, secure income profile and a WALE of 2.8 years by area, with a staggered expiry profile, underpinned by occupiers from the legal, engineering and technology industries.
The property is positioned to benefit from the redevelopment of the former Transit Centre site into the Cross River Rail station and proposed Brisbane Live project, which will provide a blend of upgraded public transport facilities as well as world class community infrastructure.
Aviator Capital Managing Director Andrew Glen said the surrounding surge in development had underpinned the company’s interest in the asset, providing a rare opportunity to leverage off public and private expenditure in the precinct.
“193 North Quay marks Aviator Capital’s fifth acquisition in Queensland and first in the Brisbane CBD. The property holds a prime riverfront position in a sector of the Brisbane CBD that is set to benefit from enormous surrounding infrastructure development and we were attracted to the fundamentals of the building as an office asset, as well as the longer term development proposition,” Mr Glen said.
CBRE’s Jack Morrison, Peter Chapple and Adelaide O’Brien brokered the sale on behalf of Kyko Group.
“The quality of this asset and its premier location attracted interest from both offshore and onshore investors,” Mr Morrison said.
“CBRE has transacted over half a billion dollars’ worth of office assets priced below $100 million in the first half of 2022. Despite headwinds, Brisbane continues to attract buyers for quality properties such as 193 North Quay and campaigns continue to be well contested.”
Kyko Group Director Bill Jenkings noted, “After purchasing the asset in 2007 and enjoying strong returns the timing was right for us to sell. This transaction will help Kyko Group further focus on markets in which we are actively seeking opportunities with the Sydney office market being a key target.”