33 Longland Street sold to RF Corval in a off-Market acquisition handled by CBRE Jack Morrison and Peter Chapple in conjunction with Chris McLeod of Yourcommercial.

Specialist property fund manager and investor RF Corval has expanded its Brisbane portfolio with the $20,500,000 acquisition of a boutique office asset in Newstead.

CBRE’s Jack Morrison and Peter Chapple negotiated RF Corval’s off-market acquisition of the 33 Longland Street building in conjunction with Chris McLeod of Yourcommercial.

RF Corval’s Head of Transactions Oliver Picone said, “Newstead is one of Brisbane’s most affluent inner-city suburbs and we are excited to add what we believe to be one of the area’s best office offerings to our portfolio. The property offers a point of difference, being well-presented, character space with numerous avenues for value creation. The existing tenancies range in size from 100-300 sqm which we are seeing as the most active segment in the leasing market at present.”

RF Corval has a strong track record in active asset management, with 33 Longland Street adding to its existing Queensland portfolio, which includes Bundall Corporate Centre on the Gold Coast and 365 Macarthur Avenue, Hamilton.

The Newstead property was acquired from a private interstate owner who completed a complete refurbishment of the building in 2010.

Incorporating just under 3,000sq m of well-appointed office space, the asset is situated on a 1,504sqm site directly opposite Gasworks. It also offers an existing development approval for a 1,310sqm building extension.

CBRE’s Mr Morrison noted, “Properties such as 33 Longland Street are in short supply in the current market, both from a leasing and investment perspective. Character buildings of this size with 1,000sqm+ plus floor plates, which can be efficiently sub divided, are a rare commodity, with the property also benefitting from its corner site location and attractive car parking ratio.”

Mr Morrison added; “Investors are actively seeking buildings which are experiencing leasing momentum in the current environment, with this building specifically benefitting from its high-quality office space, access to local amenity and on-site parking.”

The Longland Street building is occupied by City Fertility, engineering firm Westera Partners, Kokoda Property Developers and several financial planning, accounting and professional services businesses.

It is currently 90% occupied, with the current income translating to a passing yield of circa 7.0% and a fully leased yield of circa 7.8%.

CBRE’s Peter Chapple said, “We are seeing strong and continued interest in early 2021 from interstate syndicates and investment firms seeking Brisbane near city and CBD assets. We are expecting this to continue throughout the year given that many of these groups have active capital that has yet to be placed.”

To request a sale analysis of the deal please email either of the selling agents via the contact forms below.