Real estate investment manager Marquette Properties has expanded its Brisbane portfolio, paying $52 million to acquire QIC’s 63 George Street office tower.
CBRE’s Peter Chapple, Jack Morrison and Bruce Baker negotiated the sale following an expressions-ofinterest campaign.
It was a tactical acquisition for Marquette, which last year acquired the nearby 41 George Street office tower to undertake a Purpose-Built Student Accommodation (PBSA) project, Chapple said.
“Strategically located near Albert Street Cross River Rail, Queens Wharf, Parliament House and QUT, the asset has excellent demand drivers and ultimately attracted interest from multiple local, domestic and offshore groups that wanted to secure this prime CBD position,” he said.
The 10,586sq m asset is fully occupied by the State of Queensland until April 2029 with no further lease options.
Marquette Properties managing director Toby Lewis said the Brisbane CBD needed more offices, hotels, apartments, PBSA “and this property can help unlock these opportunities and assist with the city’s transformation in the lead-up to the 2032 Olympics”.
Morrison said the building’s cash flow and holding income had been a draw for potential buyers, including those looking at adaptive reuse plans and the longer-term prospects for Brisbane’s office market.
“The secure government-backed income was appealing, particularly as the fundamentals of the Brisbane office market continue to improve with limited new supply forecast for the next five years,” he said.
The George Street building occupies a 1750sq m site zoned PC1 (City Centre), which allows for several uses, including residential, hotel and commercial developments of up to 274m subject to the relevant planning approvals.
