Welcome to this week’s Property News.
News this week that US Based Hines will acquire 50 Ann Street Brisbane for $210m is another strong endorsement for the Brisbane market. So far this year, Brisbane has seen over $1.1bn of major office asset sales with $210m being the magic number for an asset. Earlier this month LaSalle Investment Management sold 307 Queen Street also for $210m, and in March Ashe Morgan also paid $210m for 310 Ann Street . This level of activity compares to 2019 which also recorded just over $1.0bn in Office market sales over the first 5 months of the year, and is at least twice as high as each of 2018 or 2020.
Brisbane continues to be transformed with major infrastructure projects including the 2nd airport runway (now complete), Queens Wharf Casino and entertainment quarter (due for completion in 2022) and the Cross River Rail project (due for completion in 2024). Once our international borders re-open, Brisbane and SEQ will be well placed to see a significant increase in tourism over the years ahead and with the city likely to be awarded the 2032 Olympics games, the next 10 years are likely to be very strong. South East Queensland is already seeing significant numbers of interstate migration, a trend which we feel will continue to gain momentum over the years ahead. The migration is already fuelling the boom in residential markets across the region and will provide flow on effects to other industries and support services, providing good opportunities for commercial real estate.
There was very little news coming out of the major AREITs this week as most are finalising year end valuations numbers.
Lendlease were reported to have sold out of its Wilton Masterplan Community south of Sydney. The asset was likely to have been a drag on its balance sheet as opposed to the preferred landowner-development-management model it now prefers which provides more flexibility to its staging of land development.
Charter Hall also identified a value add industrial / business park opportunity in the purchase of a 16.8ha site at Boronia, east of Melbourne.
If you have any news, information or research reports you’d like us to share with the market, please feel free to send me an email at info@propertymarkets.news.
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