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The University of Queensland (UQ) is set to occupy a heritage Queen Street property for its Brisbane CBD campus after buying the "Chambers" building and an adjoining office building for $47.4 million.
Built between 1881 and 1924, the iconic Chambers building on 308 Queen Street was originally the head office for the Queensland National Bank and is currently leased by National Australia Bank (NAB).
The properties including "The Tower" on 88 Creek Street were sold by Perth-based Primewest (ASX: PWG), which recently listed on the ASX and in late November purchased two properties in Coffs Harbour, NSW and South Australia for $45 million.
The Primewest fund bought the buildings in 2016 for $37.4 million, making the recent sale of The Chambers only the third time the high profile city landmark has sold in 130 years.
Primewest director David Schwartz says the company is delighted to see the properties becoming part of the University of Queensland's campus portfolio. With its main campus in the inner western suburb of St Lucia, UQ owns other Brisbane CBD properties including 293 Queen Street and Customs House.
Schwartz says there have been substantial capital works on The Tower since its completion in 2008 to achieve and maintain an A-Grade standard, while capital works on The Chambers have also been completed.
Together the buildings provide 3,516 square metres of office space and 985 square metres of retail.
"These building are located in Brisbane's "Golden Triangle" and have provided investors in the Primewest managed fund with strong cashflow and capital growth since purchasing," says Schwartz.
"We are excited to see how the University of Queensland will utilise the space."
The property currently returns a net income of $3.32 million and has an occupancy of 98.5 per cent.
Photo: Wikimedia Commons
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