ASX-listed Growthpoint Properties Australia has scooped up the Bank of Queensland headquarters building in Brisbane’s city fringes for $250 million.
The A-Grade office asset, located at 100 Skyring Terrace in Newstead, was snapped up on a 6.1 per cent passing initial yield and offers a 7.5 year WALE.
Major tenants include ASX-listed Bank of Queensland and Collection House.
CBRE’s Flint Davidson, Bruce Baker and Tom Phipps brokered the 12-level office building deal on behalf of two Charter Hall funds.
The acquisition adds to Growthpoint’s substantial portfolio and builds upon its income enhancement strategy.
The acquisition will be partially funded by an equity raising of up to $135 million via a one-for-17.65 accelerated non-renounceable rights offer.
Growthpoint has committed to take up its full entitlement of about $89 million worth of securities under the rights offer.
New securities issued under the equity raising will rank equally with existing securities.
“The acquisition further diversifies Growthpoint's high-quality portfolio and again demonstrated the group's ability to source and execute quality transactions across sectors,” Growthpoint managing director Tim Collyer said.
The building is located in Newstead, one of seven inner-city locations pegged for urban renewal as part of Brisbane’s sprawling inner-city office market.
In the six months to July this year, CBRE research found that Urban Renewal vacancy contracted from 14.3 per cent to 13.7 per cent with vacancy expected to continue to tighten in 2019.