US-based Hines is hoping to gain a windfall on the sale of its A-grade 348 Edward St tower, following an intensive leasing campaign for the building and amid Brisbane’s growing attraction to office real estate investors.
Hines purchased the 15-level, 11,123 sqm tower less than three years ago for $49 million as a value-add opportunity, and has taken its occupancy rate from 36% to 81% in that time.
A price tag of as much as $90 million is expected.
Around $7 million was spent on building renovations before Hines took ownership, and it has since struck leasing deals with part, full and multi-floor tenants, including global consulting and technology company Deswik.
Improvement in the Queensland economy and a string of major CBD infrastructure projects has seen Brisbane’s vacancies tighten, and incentives high are expected to reduce in the next phase of the recovery.
The tower is on a prominent 1,394 sqm site directly opposite Central train station, and the site’s potential to accommodate up to 50,000 sqm of gross floor area also brings a sizable development aspect to the offering.
CBRE’s Flint Davidson, Adelaide O’Brien and Tom Phipps have been jointly appointed to with JLL’s Luke Billiau and Seb Turnbull to market the tower.
Last year, Hines and joint venture partner Goldman Sachs paid $95 million for the former Westpac headquarters at 260 Queen St, and is undertaking a $12.5 million refurbishment of the building. Major co-working space provider WeWork has just been secured as a tenant across 4,600 sqm.
Hines also sold 825 Ann St and and 100 Brookes St in in the city fringe suburb of Fortitude Valley as part of a four-asset portfolio to Centuria for $645 million.