RACQ PURCHASES $60M CBD OFFICE
Written on the 10 December 2014
RACQ has purchased a Brisbane CBD office building for $60 million in an off market transaction.
The 18 level tower at 60 Edward Street which provides a total net leasable area of 10,725sqm is currently 77 per cent occupied.
RACQ is consolidating existing Brisbane offices from three different locations with the Edward Street address set to be their new base for office administration and call centre functions.
The transaction indicates an initial yield of 7.41 per cent and an improved capital value of $5,581/m.
Jason Lynch and Tom Phipps of Colliers International negotiated the transaction.
Mr Lynch says RACQ were in the market for about 12 months looking for the right building in the CBD.
They had a requirement to either buy or lease between 4,500sqm to 5,000sqm of space as they needed to consolidate existing offices from three different locations, he says.
Mr Phipps says RACQ saw an opportunity and did not want to miss out on one of Brisbanes iconic office towers that has been professionally managed by major institution, AMP Capital.
The asset has been continually upgraded by AMP Life which was a major attraction for RACQ, says Phipps.
AMP Lifes refurbishment included a full upgrade of the entrance lobby and foyer, lifts, amenities, carpets, ceilings, T5 lighting and air conditioning.
In addition the building offers ground floor caf, 110 car parking bays across two basement levels as well as new end of trip facilities.