A Hong-Kong buyer has chosen a Brisbane office tower as their first Australian acquisition, purchasing 757 Ann Street for $94 million.

The fully-leased 11-storey office asset was brought to market by Australian property fund Investec towards the end of last year with a weighted average lease expiry of approximately five years.

Completed in 2014, the state-of-the-art building comprises 9,422 sqm of A-grade office space and has a strong income profile supported by the anchor tenant - multi-billion dollar technology company, Asea Brown Boveri. 

At a glance:

• An 11-storey office asset at 757 Ann Street has been sold to a Hong Kong-based buyer for $94 million at an initial yield of 6.6 per cent.
• The fully-leased building has a net lettable area of 9,008 square metres and a WALE of 4.46 years.
• The deal was negotiated by Cushman & Wakefield's Mike Walsh and Peter Court on behalf of Investec.

The building occupies a dominant corner position on Ann Street, one of Fortitude Valley’s main thoroughfares, and Morgan Street. Brisbane’s most renowned rooftop bar, Bar Eleven, is also located on the top floor. 

Cushman & Wakefield's Peter Court and Mike Walsh were exclusively appointed to market the property, fielding enquiries from a mix of offshore and domestic investors.

Source: Cushman & Wakefield 

Mr Walsh told WILLIAMS MEDIA the response to the marketing campaign and ultimate sale reaffirmed that despite some political headwinds, the overarching longer-term view from global capital remains positive on Brisbane primarily due to the ongoing Infrastructure boom and relative attraction from risk-adjusted return perspective compared to the Sydney and Melbourne markets.

"Last year was an extremely liquid year for Brisbane from a transactional perspective and our market has benefited off not only low stock levels in Sydney and Melbourne, but also heightened appetite from new capital to establish themselves in Brisbane," he said.

"This is best evidenced by the sale of 757 Ann Street to private capital originating from Hong Kong.

"It’s a great shot of confidence for the Brisbane Fringe Market that a group like this has chosen this asset to be their first acquisition in Australia and the depth of bidding capital behind them suggests more new entrants are expected to position themselves in Brisbane once normality returns to the market.”

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