OfficeLindsay SaundersMon 14 Sep 26
GPT Group Pays $380m for Office Tower on Brisbane’s Eagle Street
GPT Group has acquired a CBD office tower in Brisbane’s Golden Triangle for $380 million, paying what it says is significantly below replacement cost.
The acquisition of 66 Eagle Street is the latest investment by GPT’s value-add partnership, which has now deployed more than $500 million across student living, logistics and office assets since launching in February.
In June of this year, it was reported the investor was targeting the 23-storey tower, with a $400-million price tag bandied about.
GPT was among the investors that pursued 66 Eagle Street when the Brisbane office tower was offered for sale in 2019. The 30-storey asset attracted interest from GPT, Charter Hall, Abacus and Deka, with Deka ultimately securing the building for $380 million in early 2020.
The A-grade tower has 32,000sq m of net lettable area and is 95.5 per cent leased—the Federal Government occupies levels 18 and 19—with a weighted average lease expiry of 3.8 years.
Tenants at 66 Eagle Street include QIC, McCullough Robertson, Mills Oakley, Fujitsu, WT Partnership, and Commonwealth and Queensland government departments.
The tower underwent a major refurbishment before its previous sale, including upgrades to the ground-floor lobby, end-of-trip facilities and the addition of a new cafe.
The works were part of a $15.1 million upgrade program designed to reposition the 23-level building within Brisbane’s Golden Triangle.
The asset also has more than 200 basement car spaces and floor plates of about 1450 square metres.
GPT said the price paid was a significant discount to replacement cost, giving the partnership exposure to an established office asset without the cost of developing a comparable tower.
The deal also gives GPT greater exposure to a sub-market where it already owns and manages 111 Eagle Street and Riverside Centre.
GPT chief executive and managing director Russell Proutt said the Golden Triangle remained one of the group’s highest-conviction office sub-markets.
“Brisbane office leasing fundamentals” were strengthening, while the asset had material under-renting and the CBD had limited forecast supply, Proutt said.
GPT will provide investment management, leasing and property management services for 66 Eagle Street.
The partnership will fund the acquisition through equity and non-recourse debt.
Financial close is targeted for November, subject to Foreign Investment Review Board approval.
GPT is among Australia’s leading real estate investment managers, with assets under management of $34 billion across a diverse portfolio of retail, office, logistics and student accommodation assets.
