PRIME BRISBANE PORTFOLIO HITS THE MARKET
Written on the 12 October 2015
KNIGHT Frank and JLL have teamed up to sell some of Brisbane's most iconic office tower and development assets.
The real estate firms will jointly manage the international expression of interest campaign for the portfolio, which includes 300 Queen Street, Festival Car Park on Charlotte Street and McWhirters Car Park on Ann Street.
Both the institutional-grade office tower and two stand-alone car parks have the potential for immediate development or long-term holding income.
Ben McGrath of Knight Frank and Geoff McIntyre of JLL will market the portfolio on behalf of Seymour Group and chairman Kevin Seymour, who has decided to divest and allow the younger generation to pursue investment strategies.
"It has taken many years to build a portfolio of this strength and diversity," Seymour says.
"We're only the second owner of the HSBC building and can see great development potential with strong income for the carparks, however at 75 years old it is the time to move on."
The campaign follows a strong year of investment in the city, with more than $1.3 billion of office stock and $450 million in development sites sold so far.
JLL Queensland managing director Geoff McIntyre says the momentum in the market continues to strengthen.
"The strength of the capital markets has resulted in firming investment hurdles, however there is still relative value between Brisbane and the southern capitals of Sydney and Melbourne," McIntyre says.
"We have been very pleased with the level of engagement in all of our major campaigns this year, with offshore and domestic groups all active."
More investors are turning to alternative investment opportunities in non-traditional asset classes, with the car park market emerging as a popular option in recent years.
With car parks typically providing high cash flow, low capital expenditure requirements and offering redevelopment opportunities, McIntyre says there will be strong competition during the sale.
"Both assets have outstanding property fundamentals that ensure they suit a range of investment or development strategies," he says.
"Festival Car Park is located less than 100 metres from the most significant development in Brisbane for a generation Queens Wharf, providing immense opportunity for an incoming purchaser.
"Likewise, McWhirters Car Park is located on one of the last landmark development sites in Fortitude Valley."
Festival Car Park features 429 bays across 1,835sqm, while McWhirters offers 777 bays and 4,572sqm of site area.
McIntyre says major car park operators have already expressed interest in the two properties.