CommercialLeon Della BoscaWed 21 Oct 26
Alceon Snaps Up Brisbane’s 410 Ann Street in $124m Office Deal
Alceon Group has bought two Brisbane CBD office buildings and an adjoining car park for $124 million, betting upgrades and rising rents can unlock value from an under-managed complex.
The alternative investment manager has acquired 410 Ann Street and the neighbouring Cathedral Square car park at a substantial discount to replacement cost.
The two towers at 410 Ann Street comprise more than 20,000sq m of office space and 139 car bays on a 4052sq m freehold site.
Next door, the Cathedral Square car park of 572 bays on an 8949sq m leasehold expiring in April, 2108, taking the total to 711 bays near Central Station and the future Cross River Rail network.
The sale price was about $6000 per square metre, or less than $4000 per square metre when normalised for excess parking, on a fully leased yield of 11 per cent.
Previously held by a Mirvac-managed fund, the complex is about 90 per cent leased to tenants including the Public Trustee of Queensland, First Parking, Mipac, Sonic Healthplus and Dye & Durham, with a weighted average lease expiry of four years.
Rents are currently well below the prevailing market.
Upgrades to the lobbies, common areas and vacant floors would lift the building to a B+ standard. Almost half the floor space is due for renewal in 2028 and 2029.
Brisbane CBD recorded the strongest rental growth of any Australian CBD in the year to June 2026, CBRE research showed, with prime net effective rents up about 16 per cent.
Prime vacancy is forecast to fall from 10 per cent in 2025 to about 5 per cent by 2028.
Alceon Group managing director and Queensland head Todd Pepper said the asset was well-located but had been under-managed for some time.
“Our plan is hands-on—invest in the building, lift the tenant experience and lease it up into a market where good space is getting harder to find,” Pepper said.
“Being on the ground in Brisbane means we know the tenants, the agents and the building stock. That local knowledge, combined with our ability to commit capital quickly, is what allowed us to secure this asset.”
Beyond office, the firm is one of Australia’s larger non-bank providers of development finance.
On the Gold Coast, Sydney-based Sammut Group in partnership with Alceon topped out the 38-level, 54-apartment tower dubbed Coast at 43 Garfield Terrace, built by Multiplex.
Earlier this year, Alceon exited its $670 million exposure to Sydney builder-developer Bathla Group, months before Bathla entered voluntary administration in August.
