MAJOR logistics player ESR and partner Goldman Sachs are hoping to fetch about $275 million for the State Law Building at 50 Ann St in Brisbane’s CBD.
The 25 storey, A grade tower has an building area of 25,519 sqm and is fully leased Queensland Department of Justice and Attorney-General, and is close to the Supreme and District Courts, Magistrates Court, Commonwealth Court and state police headquarters.
The state government recently lease renewed its lease and has already spent more than 40 years within the building. About $10 million of capital expenditure has been committed to a brand-new end-of-trip facility as well as mechanical and electrical upgrades.
CBRE’s Bruce Baker and Flint Davidson have been appointed to the expressions of interest campaign alongside JLL’s Seb Turnbull and Paul Noonan.
“It’s unusual to find high yielding, core CBD real estate which has government backed income and potential for core plus returns,” CBRE’s Davidson said.
He said interest would also be fuelled by the limited office investment opportunities around the country, with first quarter stock levels looking quite lean in comparison to recent years, despite the abundant liquidity in the market.
Brisbane saw a busy period of deals either side of the new year. A blockbuster $380 million deal extended its streak of major office transactions, with Deka Immobilien acquiring 66 Eagle St from Lendlease’s Australian Prime Property Fund and co-owner the Abu Dhabi Investment Authoriy, while dual JSE and ASX-listed Investec Australia Property Fund sold a Fortitude Valley tower for $94 million and Prime Super snapped up 313 Adelaide St for approximately $160 million in December.
Turnbull said the building was also set to benefit from unprecedented investment in the surrounding area, including the Brisbane Quarter, Cross-River Rail, Brisbane Metro, Queen’s Wharf, 80 Ann Street and Brisbane Live, all located within 500 metre of the asset.
“Alternative options for the Department of Justice and Attorney-General to solely occupy more than 25,000 sqm are extremely rare, particularly within immediate proximity to Queensland’s courts precinct, greatly improving the prospects for future long term occupation.”
Expressions of interest close 19th March.