The Brisbane CBD could end 2020 on a high as Dexus and its office partner looks set to offload a 32 level, A-Grade commercial building in the heart of the city’s Golden Triangle.
Colloquially known as ‘The Gold Tower’ due to its recognisable gold colour, the island site offers a future value-add opportunity via the development of an annex providing an addition or extension of the podium floor plates to increase the overall NLA.
When completed in 1978, 10 Eagle Street was Brisbane’s tallest building. It offers approximately 27,826sq m* of net lettable area (NLA) with typical floor plates of 950sq m and sits on a 3,477sq m island site in Brisbane’s premium business precinct.
The property has 247 secure car bays, a 5-Star NABERS Energy Rating, and is 91% (by income as at November 2020) occupied by a diverse mix of high-quality tenants.
Justin Bond, Paul Roberts and Neil Brookes of Knight Frank and Paul Craig, Anthony Ott and Ben Azar of Savills Australia have been appointed to market the property.
Justin Bond – Partner, Capital Markets, Knight Frank said the offering was the most significant investment opportunity to be offered to the Brisbane market during 2020.
“While investor interest in Brisbane has continued during COVID-19, there has been limited availability of quality investments for sale,” he said.
“No institutional office transactions have occurred within the Brisbane CBD since the sale of 66 Eagle Street in late 2019.
“As such this asset is expected to attract strong pent-up demand from both offshore and domestic investors, with the biggest drawcards being the prime Eagle Street position, diverse income profile and future development upside.”
Mr Bond said investment activity in Sydney and Melbourne has resumed and expects Brisbane to follow, particularly for assets within the Golden Triangle.
“The significant infrastructure investment within the Brisbane CBD, along with long term population growth, stable governance and Australia’s safe haven status, will encourage further investment into Brisbane.
“While demand was particularly strong from overseas investors pre-COVID, we continue to receive significant enquiry from cross-border capital this year, but a lack of investment opportunity in Brisbane has prevented transactional deal flow.”
Anthony Ott, State Managing Director - QLD, Savills Australia said the location of the building, right in the heart of the Golden Triangle and occupying a premium position along the tightly held Eagle Street, presents a rare opportunity for investors.
“Investors will be drawn to not only the premium location, but the future development opportunity to add another building on the site or perhaps extend the floor plates.
“The property is in proximity to all the major CBD infrastructure projects in Brisbane, with $12.8 billion in developments within a kilometre radius, underpinned by the Cross River Rail and the waterfront precinct redevelopment.
“The building is already surrounded by significant amenity with popular shopping, entertaining and dining precincts in the vicinity including Eagle Street Pier, Queen Street Mall and the Edward Street retail hub, with public transport, including the ferry, bus and train, also nearby.”
Mr Ott said the underlying asset fundamentals of 10 Eagle Street also complimented Brisbane’s most active tenant market at the moment, in the 200sq m to 1500sq m size range, ensuring further consistent demand for space within the building.
“The quantifiable demand surplus within this market over the next three years positions 10 Eagle St to perform well,” he said.
10 Eagle Street is for sale via an expressions of interest campaign through Knight Frank and Savills Australia closing 16 December 2020.
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