A Sydney-based private investor has snapped up Brisbane’s tallest building for $32.9 million, representing a square metre rate of $9,190/square metre.
Known to be the first building to reach the city’s 274 metre height limit, Brisbane's Skytower features 1138 apartments, a hotel and the highest infinity swimming pool in the Southern Hemisphere.
Developed by Billbergia and AMP Capital in 2019, the mixed-use 88 storey tower at 22 Margaret Street in the Brisbane CBD was sold in a portfolio anchored by a commercial car park featuring 78 bays, a Kids early learning centre, offices and retail.
Sold by Colliers’ expert team comprising of Tom O’Driscoll, Tony Huan Wang and Nick Wedge, the significant sale represents a 5.47% yield (based on annual net income), and the 10 fully leased tenancies across 4 different asset types included in the sale highlight a Weighted Average Lease Expiry (WALE) of 11.3 years.
“Given the sheer weight of capital currently in the market competition chasing opportunities such the Skytower Commercial Portfolio is brisk – it’s a premium low-risk, year on year return asset. A wide pool of buyer profiles from high-net worth individuals and institutional capital, both from within Australia and Asia were attracted.“ Colliers Director Tom O’Driscoll said. Colliers Director Tom O’Driscoll said.
Mr O’Driscoll also added “This was our first major marketing campaign in partnership with the Ready Media Group – their property marketing expertise combined with the targeted market reach of their listing portals were key to the success of this sales campaign."
Reflecting on the pleasing results that the campaign generated, Colliers Senior Executive Nick Wedge also added, "Our campaign attracted over 150 enquiries and a total of over 7 bids moving into third round bid stages. Our client Billbergia was exceptionally content with the transaction result. This Hutchinson development marks a premium product, which makes a statement within the Brisbane CBD landscape”.
Manager of Colliers’ Asia Markets, Tony Huan Wang said, “Skytower’s CBD location in close proximity to Queens Wharf Casino complimented with a portfolio investment that covered 4 classes of Real Estate including 78 car bays, appealed greatly to offshore capital. Whilst many underbidders of this profile missed the opportunity, it demonstrated the pent up demand of this profile eagerly pushing to buy trophy assets in Brisbane This will only increase once domestic and international borders open”