Fortitude Valley office tower going to market

24 February 2022

The A-grade HQ South Tower in Brisbane’s Fortitude Valley has been listed for sale, with investor interest expected to reach in excess of $140 million.

HQ South occupies a 3,017sqm site with a 45m frontage to Wickham Street and a further 62m to Brookes Street and is well-connected to public transport and some of Fortitude Valley’s favourite destinations.

The tower features easily divisible, 2,250sqm floorplates with a central core configuration, excellent natural light, and benefits from a 6-star Green Star design, 5-Star NABERS Energy Rating and 4-Star NABERS Water Rating.

CPB Contractors, the Australasian arm of the CIMIC Group and delivering Brisbane’s $6.9 billion Cross River Rail project, is the major tenant, occupying 61% of the 14,588sqm NLA with the majority of the lease running through to mid-2026.

Other office tenants include RPS Australia, AH Jackson & Co and the recently-opened Next Medical Practice, complemented by a number of retailers across 1,503sqm within a fully integrated retail plaza.  

CBRE’s Peter Chapple, Tom Phipps and Stuart McCann along with Justin Bond, Paul Roberts and Neil Brookes from Knight Frank have been appointed to manage the sale campaign on behalf of M&G Real Estate, with Expressions of Interest invited by April 5, 2022.

“With an income profile anchored by a global infrastructure construction consortium, HQ South offers excellent medium-term lease rental income with timely exposure to Brisbane’s population and infrastructure growth trajectory,” Mr Chapple said.

“HQ South is Brisbane’s maiden core-plus opportunity of 2022 and is expected to generate strong interest due to its multiple medium-term value enhancement opportunities while offering occupiers highly desirable office amenity.”

Knight Frank’s Justin Bond said: “With the lifting of COVID-19 restrictions on international travel, the Brisbane office market is already experiencing increased investor attention.

“Domestic and offshore investor appetite, driven by upcoming developments in Fortitude Valley and Brisbane’s burgeoning infrastructure pipeline, will result in significant demand for this rare opportunity of acquiring a core-plus asset in Fortitude Valley.

“We believe this asset is an outstanding example of a building that holds broad appeal to investors and businesses alike given its commitment to modern and environmentally-focused amenities accompanied by rich retail and food services in the immediate proximity.”