Australian boutique real estate asset manager Quintessential Equity has bought an office tower in Brisbane from Brookfield for A$250m (€155.1m).
Brookfield first put the asset, 240 Queen Street, located in Brisbane’s ‘golden triangle’ precinct, on the market a year ago. At the time, Australian media reported that the value of the building could be as high as A$300m.
The 26-level office tower will be held in an unlisted single-asset trust. Quintessential raised A$137m in wholesale capital to fund the acquisition. It also plans to spend A$31m to freshen up the building and enhance its ESG credentials.
“This achievement marks the country’s largest capital-raise of its kind in 2024,” said Avi Gordon, head of Quintessential Invest. “The success of this capital-raise underscores the compelling investment opportunity presented by 240 Queen Street and reaffirms the Quintessential strategy of identifying and capitalising on counter-cyclical market opportunities.”
Andrew Borger, Quintessential CIO, said it was an opportune time to invest in Southeast Queensland, with solid infrastructure and job growth anticipated in the lead-up to the Olympics and beyond.
Over the next 12-24 months, the arrival of two of the largest pieces of public infrastructure in over 100 years would reshape the Brisbane CBD, he said. The Cross River Rail station at Albert Street and the new Metro on King George Square would reorientate the city’s centre to a more central location.
JLL’s Queensland managing director, who is part of the sale team, said 240 Queen Street was the largest office transaction in Brisbane in the recent market cycle.
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