An A-grade office property in Nundah has been bought for $105.25 million in what appears to be the second biggest deal yet in Brisbane this year.
Centuria Property Funds, based in Sydney, is purchasing the building at 1231-1241 Sandgate Rd from Growthpoint Properties Australia. The two parties are expected to settle the deal in July 2017.
Australian Financial Review revealed that the sale is in line with Growthpoint’s strategy to cut debt and rebalance its portfolio.
Lure of Brisbane Property Investments
The extravagant Nundah property deal confirms a trend luring property investors to Queensland. With its healthy economic growth forecasts, investors are targeting Brisbane and its surrounding areas.
The price advantage that Brisbane has over Sydney and Melbourne is one reason why investors are becoming increasing interested in putting money in the local real estate market.
Centuria is upbeat about the Sandgate property considering the strong demand and decreasing office vacancy rates in the region.
Nundah, in particular, offers strategic location advantage as it is situated between Brisbane CBD and the airport. The suburb also provides top quality retail amenities and adequate access to trains and road infrastructure.
The 12,980-square-metre Nundah property is fully leased to tenants that include Energex and Powerlink. The Sandgate property is ideal for long-term investment, with a weighted average lease expiry (WALE) of 9.4 years and 81% of gross income coming from Queensland government owned tenants.
