Barings has bought a blue-chip office tower at 480 Queen Street in the central business district of Brisbane from Dexus for A$700m (€425m).
The transaction, on behalf of institutional investors, underscores the global asset manager’s conviction in the office market recovery in Brisbane.
The sale is the single largest of an office building in the Queensland city. Dexus paid A$544m in 2013 for the asset located in Brisbane’s prestigious Golden Triangle precinct when it was under construction.
Shaun Hannah, executive director, Barings Real Estate Australia, said the acquisition reflected a rare opportunity to Invest in one of Brisbane’s leading office assets at an attractive point in the cycle along with Barings’ continued focus on acquiring high-quality real estate opportunities in supply-constrained markets.
“We believe Brisbane currently offers some of the strongest office market fundamentals in Australia, supported by population growth, business investment, infrastructure spending and limited new supply. These dynamics continue to underpin rental growth and occupier demand for premium office space,” he said.
“The building’s high-quality tenant profile, strong sustainability credentials and significant rental reversion potential make it an attractive investment that aligns well with our value-add strategy. We see considerable opportunity to enhance performance through proactive asset management while benefiting from the broader growth trajectory of the Brisbane market.”
480 Queen Street benefits from strong connectivity to Brisbane’s transport infrastructure and is located close to key business, retail and lifestyle destinations including Eagle Street, Central Station and Howard Smith Wharves.
Barings plans to implement a proactive asset management and leasing strategy focused on enhancing tenant experience, maintaining the building’s leading ESG credentials and capturing future rental growth opportunities.
The transaction, which was managed by JLL in a global sale process, is subject to FIRB approval.
$80 Queen Street is the second significant investment for Baring, which led a consortium to buy Moorabbin Airport in Victoria for A$1.5 billion from the Goodman Group in May.
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