Australian property fund manager Corval is acquiring an A$86.5m (€49m) asset in Brisbane from an office fund managed by Cromwell Property.
The asset, located at 545 Queen Street in the Golden Triangle in Brisbane CBD, will be held in a single asset vehicle, Corval 545 Queen Street Trust.
Corval said the purchase price was around 65% below the estimated replacement cost. Cromwell paid A$117.5m to buy the building from Axis Capital in 2021.
Corval is seeking to raise A$54m from wholesale investors on the promise of target equity internal rate of return for the trust of 15%.In its investor presentation, Corval said its executives, shareholders and managed funds would invest between 25%-50% of the target equity raise.
This is Corval’s second acquisition in Brisbane, having bought seven office buildings in the Brisbane Technology Park from the Dexus Industrial fund for A$115m in July.
“The Brisbane market is performing strongly, with robust demand and constrained supply due to significant construction costs. From this, the market experienced the strongest effective rental growth across all major office markets in 2024, with net effective rental growth of 14% recorded over this period,” Corval told potential investors.
To read the latest IPE Real Assets magazine click here.
