Malaysia-based HCK has left the Brisbane market after selling its second office building this year following the off-market sale of 26 Wharf Street in April.

116 Adelaide Street has 6,869 square metres of net lettable area over 16 levels including ground level, 15 upper levels of quality office accommodation and a three-level basement. The building was recently refurbished to update the amenities, foyer and office tenancies and to improve overall functionality.

Both properties were sold by Sam Biggins and Tony Wang of Colliers international.

At a glance:

• Malaysia’s HCK takes advantage of rising Brisbane office market to off-load assets
• 116 Adelaide Street in Brisbane’s CBD sells for circa $30 million to an Australian-based investor
• The circa $30 million price tag translates to low $4000s per square metre

Mr Biggins said the sale of the Adelaide Street asset concluded HCK’s capital recycling program which had seen them take advantage of the rising Brisbane market and divest their Brisbane office portfolio to reallocate the capital into a growth opportunity in their core business of education in Malaysia.

He said the property had been previously marketed last year through another agent but had failed to sell.

“We identified that the opportunity hadn’t been sufficiently exposed into the Asian market and hence included the property in our Australian Investment Showcase in May this year before launching a local EOI campaign,” Biggins said. 

“This resulted in competitive bidding and a total of seven offers, three of which were from offshore groups or local groups with offshore capital behind them.

“The end buyer was an Australian-based investor who was attracted to the value-add prospects of the asset such as the core CBD location, opportunity for further asset enhancement initiatives and the ability to reposition the asset for lease within the rising B grade market."

Biggins said the transaction was a prime example of the strong demand for opportunities in Brisbane’s middle market office sector.

Mr Wang said strong interest from offshore groups was a testament to the Colliers International Australian Investment Showcase, designed to take Australian investment properties directly to buyers in Asia. 

“As part of the roadshow we targeted 60 or so groups across Guangzhou, Hong Kong, Macau, Hanoi, Ho Chi Minh City and Singapore and we received strong interest from Singapore, Vietnam and Hong Kong at the close of bidding,” he said.

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