ASX-listed Charter Hall Group has acquired the landmark 343 Albert Street office tower in Brisbane for $108 million.
Charter Hall was awarded a mandate last year to pursue counter cyclical investment opportunities on behalf of Singapore’s GIC Real Estate.
The purchase of 343 Albert Street – the Suncorp Plaza tower – follows Charter Hall’s recent acquisition of Santos Place for $317 million, which also formed part of the GIC mandate.
“We are excited to secure our second Brisbane CBD office investment for the CCT partnership, which extends the portfolio to >$450 million,” Charter Hall Office Partnerships fund manager Trent James said.
“The Brisbane CBD is performing in line with our partnership expectations and we look forward to exploring further opportunities.”
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CBRE’s Bruce Baker, Flint Davidson and Tom Phipps managed the deal off-market on behalf of joint venture owners Amalgamated Property Group and Morris Property Group.
The 20,000sq m, 343 Albert Street tower is situated on a prominent corner site opposite King George Square.
Major tenants the Department of Human Services and Canstar recently signed seven-year lease renewals, with the building also occupied by Pragmatic Training and the South East Queensland Office of Lord Mayors.
The site, which fronts both Albert and Turbot streets, also has significant development potential and was previously approved for a premium office tower of circa 50,000 square metres.
Morris Property Group lodged a proposal last year with the Brisbane City Council for a 30-storey mixed-use tower to replace the existing 24-storey building, constructed in 1971.
Charter Hall declined to comment on future plans for the building. The site is adjacent to the heritage-listed Albert Street Uniting Church, designed by architect GHM Addison in the mid-1880s.
A spokesperson for Amalgamated Property Group and Morris Property Group said the two organisations were progressively dealing with their jointly-owned assets as each group repositioned their investment and development portfolios in Brisbane, Canberra and the Gold Coast.
Amalgamated has under construction the Civic Quarter in Canberra City – a 20,000sq m, premium grade office building, which will add to the group’s burgeoning investment portfolio in Canberra.
Meanwhile, Morris Property Group is targeting other opportunities in the Brisbane CBD and has also added to its Canberra portfolio, having recently completed the redevelopment, upgrade and repositioning of Canberra House, a 10,000sq m commercial and retail complex in Canberra City.