Centuria Offloads Cannon Hill Building for $37m

Centuria Capital has offloaded an A-grade office building in Brisbane's inner city suburb of Cannon Hill to Sydney-based syndicator Aviator Capital for $36.95 million.

The group sold 19 Corporate Drive in Southgate Corporate Park after a campaign that demonstrated the strong demand for Brisbane A-grade office assets from local and offshore buyers.

The sale was negotiated by Matt Barker, Justin Bond and Christian Sandstrom of Knight Frank, and Anthony Ott and Peter Chapple of Savills.

The property comprises 6,028sq m of net lettable area with on-site parking for 145 ­vehicles.

The two-level commercial building, which was completed in 2008, is located in the business hub of Southgate Corporate Park.

The business park includes tenants such as Holden, Optus, National Australia Bank and the Queensland state government.

The property is Aviator Capital's third commercial asset in the Brisbane market, having snapped up 77 Hudson Road at Albion and 240 Waterworks Road at Ashgrove.

“The gross sale price achieved was approximately $5.1 million or 17 per cent in excess of the December 2018 valuation, which is an outstanding result for the Fund,” Centuria head of funds management Jason Huljich said.

The Centuria fund in which the building was held yielded an average income return to investors of about 10.3 per cent over the past 6 years.

“This is an excellent result for all investors in the fund,” Huljich said.

Property fund manager Centuria owns several property assets in the Queensland capital including 825 Ann Street and 100 Brookes Street in Fortitude Valley.

Last month, Centuria purchased the “Optus Centre” in Canberra for $35 million from commercial property group Quintessential.