PGIM Real Estate has today confirmed the acquisition of 444 Queen Street, Brisbane, from vendors Abacus Property Group and The Public Trustee of Queensland for $54.4 million. 
The vendor was advised by Tom Phipps and Peter Chapple from CBRE along with Justin Bond and Blake Goddard from Knight Frank. 

The 22-level, 13,967 sqm office building, located within the sought-after Golden Triangle, occupies a 1,708 sqm site, presenting 31 metres of frontage to Queen Street and 72 parking spaces. 

This is the second transaction in Queen Street, Brisbane by PGIM Real Estate in recent months, having recently partnered with Fortius Funds Management in the acquisition of 307 Queen Street for $214 million. PGIM Real Estate also has a stake in 130 Queen Street, alongside Marquette Properties. 

Managing Director and Head of Australia at PGIM Real Estate, Steve Bulloch, said “We are confident in Brisbane’s longer-term fundamentals, driven by strong interstate migration, continued infrastructure spend and increasing offshore investor interest, particularly with the city recently announced to host the 2032 Olympics.”

With immediate riverfront access across Queen Street and proximity to Howard Smith Wharves, Eagle Street Pier, Queen Street Mall and surrounding food and beverage offerings all within walking distance, the location offers strong tenant amenity.

Bulloch said: “The ability to acquire a Queen Street building at this rate ($3,895/sqm) provides an opportunity for us to execute our strategy of repositioning well-located but tired assets to meet the needs of future tenants”. 

PGIM Real Estate will reposition the building to A Grade standard through a comprehensive refurbishment program to modernise the building and optimise its prime waterfront location and river views.

“This acquisition comes as a strategic response to an accelerated structural shift to higher amenity, well-located CBD office assets that demonstrate strong sustainability characteristics,” explains Bulloch. 

“Office tenants are becoming more discerning, and this asset will enable PGIM Real Estate to showcase its commitment to ESG, sustainability and innovation. There is also potential to work with our innovation partners at Taronga Ventures throughout the design, construction and operations process.”

Tom Phipps Senior Director - Capital Markets, CBRE said, This sale demonstrates continued appetite from offshore capital to invest in the Brisbane CBD, despite the closed-border environment.

“Queensland is positioned for growth and Brisbane is attracting local and offshore capital, with an economy benefitting from strong COVID management and nation leading jobs growth.

“This growth is underpinned by the lifestyle and affordability benefits on offer in Queensland, with the State recording the highest levels of interstate migration in Australia.”

Justin Bond Head of Capital Markets, Queensland, Knight Frank said, “Brisbane’s economic outlook is positive and supported by the infrastructure boom which amounts to approximately $19 billion worth of CBD infrastructure and major projects in the pipeline or underway, which will be further supported by 2032 Olympics framework.

“Offering river views over Customs House, 444 Queen Street has excellent investment fundamentals on which to deliver a modern, institutional grade asset which optimizes its prime Queen Street location and river views.”

In addition to its recent deals, PGIM Real Estate has played a prominent role in several iconic Brisbane projects such as the financing of Howard Smith Wharves as well as Silverstone’s successful Newstead office project. Most recently it has also backed a luxury Kangaroo Point residential project and a mixed-use development in Toowong. Previously PGIM Real Estate was also responsible for the transformation of 215 Adelaide Street. 

The vendor was advised by Tom Phipps and Peter Chapple from CBRE along with Justin Bond and Blake Goddard from Knight Frank. 

PGIM Real Estate is the real estate investment and financing business of PGIM, the $1.5 trillion global asset management business of Prudential Financial, Inc. (NYSE: PRU).