A four-level commercial office building in Brisbane's Gateway Office Park has been sold to a private investor for $17.3 million.

Savills’ Shaw Harrison, in conjunction with Peter Chapple and Jack Morrison, were formally appointed by GARDA Capital to sell the asset named Building 2 at 747 Lytton Road via an expressions of interest campaign.

A successful re-leasing campaign conducted throughout the past 12 months meant the building presented strongly to the market with 100 per cent occupancy and a weighted average lease expiry (WALE) of 3.1 years.

At a glance:

• A four-level commercial office building in Brisbane's Gateway Office Park has been sold for $17.3 million to a private investor.
• Savills’ Shaw Harrison, in conjunction with Peter Chapple and Jack Morrison, were formally appointed by GARDA Capital to sell the asset named Building 2 at 747 Lytton Road via an expressions of interest campaign.
• The building entered the market with 100 per cent occupancy and a weighted average lease expiry (WALE) of 3.1 years.

The four-level commercial office building consists of 3,346 square metres of net lettable area, underpinned by a holding income of $1,366,145 per annum across seven corporate tenants which include brands such as NextFleet Australia and YOUI Insurance.

Savills Director Shaw Harrison said the purchaser was attracted to the Gateway Motorway proximity and Office Park positioning.

“The growth of the TradeCoast precinct has resulted in stable and consistent demand from office users requiring proximity to major freight, transport and industrial activities,” he said.

Savills State Director of Capital Transactions Peter Chapple said that Fringe & Suburban assets have continued to perform strongly across Brisbane, with over $960 million worth of transactions above $10 million recorded over the last 12 months.

“One trend we are witnessing is the increased amount of investor interest from all purchaser categories, including offshore investors, who have identified these metropolitan office precincts as established commercial property markets in their own right that offer a superior yield to fringe and CBD assets,” he said.

Mr Morrison said demand for multi-tenanted CBD fringe and suburban assets continued to remain strong.

“Testament to the efforts of GARDA Capital in positioning 747 Lytton Road in the leasing market, the asset has attracted a strong tenant profile with a host of global and national tenants," he said.

“Many of whom are first term occupants with a specific need to be located in the precinct, a huge draw card for investors of all classifications."

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