Real estate investor and fund manager, Cromwell Property Group (Cromwell), has agreed to acquire 100 Creek Street, Brisbane on behalf of unitholders in the Cromwell Direct Property Fund (DPF or the Fund).

The office building is the second office asset to be purchased by the Fund in Brisbane this year after it successfully secured 545 Queen Street, Brisbane in May.

Cromwell’s Head of Retail Funds Management, Hamish Wehl commented, “100 Creek Street is a landmark building and a stellar addition to the Fund.

“The asset has a sensational location, benefits from great amenity and has been recently substantially refurbished. It’s earnings accretive to DPF and will support the Fund’s long-standing track record of paying unitholders a regular reliable income,” Mr Wehl said.

The transaction was jointly negotiated by Flint Davidson, Bruce Baker and Peter Chapple of CBRE together with Justin Bond and Ben Schubert of Knight Frank. 

Knight Frank Partner and Head of Capital Markets, Queensland Justin Bond, said, “The sale of 100 Creek Street highlights the increased demand for Brisbane CBD office investments, despite the current border restrictions.  With a number of CBD assets close to trading towards the end of the year, we expect even stronger transaction volumes in 2022 once interstate travel restrictions ease. We have witnessed an increased trend of foreign investors, unable to travel due to the border restrictions, partnering with local investment managers looking to execute their outbound capital mandates.”

“Nationally, we are seeing a resurgence in activity from a variety of buyer groups, in particular “clubbed”  capital and wholesale high net worth investor funds seeking purchase assets that provide a compelling return in a historically low yield environment,” Mr Davidson said

“The Brisbane CBD has witnessed an enormous increase in activity in 2021, with already over $1.5bn in transactions occurring across eight significant transactions and several pending that could bring transaction volumes to 2019 levels,”  Mr Chapple said.

Located in Brisbane’s Golden Triangle, 100 Creek Street is a 24-storey office tower featuring floor to ceiling glass providing excellent natural light. The building has a total net lettable area of 20,223 sqm with rental income underpinned by a diverse mix of tenants.

Having recently undergone an extensive refurbishment which saw the repositioning of the ground floor lobby and end-of-trip facilities, 100 Creek Street currently holds an exceptional 5-Star NABERS Energy Rating and 6-Star NABERS Indoor Environment Rating.

The acquisition is subject to Foreign Investment Review Board approval (FIRB) and is expected to settle towards the end of November 2021.

DPF currently pays unitholders a regular, reliable income equivalent to an annualised distribution yield of 5.4% via its exposure to nine high-quality office assets across Queensland, New South Wales, Victoria and ACT.

The transaction was jointly negotiated by Flint Davidson, Bruce Baker and Peter Chapple of CBRE together with Justin Bond and Ben Schubert of Knight Frank. 

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