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A SINGAPOREAN buyer has set a new CBD retail record in Brisbane.
The $6.5 million acquisition of a freestanding retail building, 105 Elizabeth Street, measured $23,298 per sqm.
This is a record sale for retail assets outside Queen Street Mall and represents the buyer's first foray into Australia.
CBRE's Mike Walsh, Andrew Adnam and Peter Court negotiated the sale which attracted more than 120 enquiries.
"More than half of the enquiries originated from interstate and overseas parties, who were attracted to the long-term growth outlook for the CBD and comparatively attractive returns on offer in Brisbane," says Walsh.
"Six offers were submitted - including three overseas bids. What was interesting to note was the clear distinction between domestic and offshore pricing, with the average offshore bid being 10 per cent higher than the average domestic bid."
The property's location was one of the key draw cards, with the building situated one street parallel to Queen Street Mall and less than 150m from the soon to be delivered Queens Wharf Casino Precinct.
"Only 14 freestanding properties under $10 million have transacted on Elizabeth Street in the past 20 years," says CBRE's Adnam.
The 279sqm building is situated on a site area of 516sqm. It is fully tenanted, with the current income translating to an initial yield on the sale of 6.09 per cent.
Existing tenants are skin care and health food retailer Sini Care and dessert bar and high tea franchise Passion Tree Café.
The asset also offers future development potential, with potential to redevelop the building up to eight storeys subject to the relevant approvals. Its development classification permits commercial, residential, hotel or retail uses.
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