Charter Hall Group (ASX: CHC) has announced the acquisition of three Brisbane CBD office assets for $94.0M which will form the basis of a new major development. The adjacent properties, located at 217 George St, 231 George St and 60 Queen St, are collectively known as No.1 Brisbane with Charter Hall indicating that it plans to undertake a new office development at the site, along similar lines to its Sydney office development at 333 George St, Sydney.
The site currently comprises 10,180sqm of net lettable area and is conveniently located across from the Treasury Casino and close to the iconic Queens Wharf. The properties have recently undergone refurbishments including new foyers, lift upgrades and turnkey fit outs as it continues to house major tenants including St. George Bank, Heritage Bank and Pure Health Club. The acquisition price represents a capitalisation rate of 7.45% and a fully-let passing yield of 7.9%.
Although the site was initially approved for an 81-storey residential tower last December, Charter
Hall’s will be looking to lease up the properties in the near term, with eventual plans for the
major development. The super prime corner location stands to benefit from the current wave of infrastructure projects in Brisbane over the long term.