Quintessential has settled a $250 million deal to acquire 240 Queen Street, Brisbane, the A-Grade office tower  from Brookfield.  

It is Quintessential's second major acquisition in less than a year, following the $293.1 million settlement of  1 Margaret Street in Sydney last September. 

With a recent history of robust rental growth, Brisbane presents a promising market for investors. In 2023, it  witnessed an 11.4% Prime face rental growth, and this trend continued with a further 2.7% growth in Q1 2024.  Given the limited supply, Brisbane is projected to maintain its position as the highest rental growth market in the  Asia Pacific region in the medium term.  

This prime ‘Golden Triangle’ location in Brisbane CBD offers a dynamic mixed-use site with top-notch end-of-trip  facilities, convenient amenities, and a total area of 27,632 sqm, including 24,922 sqm of office space and 2,710  sqm of retail space.  

The property is in an optimal CBD position. It is located at the start of the Queen Street Mall, surrounded by  premier luxury retail outlets and cafes, such as Tiffany and Louis Vuitton. Offering connectivity for its users, it is  just a stone's throw away from public transport. 

Two major infrastructure projects are underway at Albert Street and King George Square. These projects will  provide greater connectivity to two public transport hubs within walking distance of 240 Queen Street, further  enhancing the commuter experience of the building.  

Building on the $38 million upgrades and regeneration works by Brookfield, Quintessential will invest an additional  $31 million in regeneration and sustainability upgrades. This includes a major upgrade of the entrance and lobby  area, further enhancing the building's already-established sustainability attributes and demonstrating unwavering  commitment to responsible and sustainable redevelopment. 

240 Queen Street embodies Quintessential’s long-held belief in premium-grade commercial office space.  Quintessential offers investors the potential for strong returns and provides leading amenity and tenant  experience, enabling businesses to attract and retain talent in a competitive employment market.  

With a current tenancy rate of 97%, the tenant profile of the building is already strong. Commonwealth Bank’s  flagship branch is in the retail space on the ground floor with Hall Chadwick Accountants, ASIC, Hall and Wilcox  and Christie Spaces – which operates a co-working space on the third level of the building – each committing to  long-term tenancy agreements. 

JLL’s Paul Noonan, Seb Turnbull, Kate Low and Jack Sullivan negotiated the sale in conjunction with Justin Bond  and Ben Schubert of Knight Frank. 

Mr Noonan said: “240 Queen Street is the largest office transaction in Brisbane in the recent market cycle and  further cements our market as a keen focus for growth-focused investors. The asset’s timeless presentation and  prime location will ensure its continued relevance in our market”. 

Andrew Borger, Quintessential Chief Investment Officer, said: “Recent focus on Southeast Queensland, in particular premium-grade commercial assets, has created a strong  sense of competition in the market. We are incredibly proud to have settled on 240 Queen Street following a  competitive negotiation process. 

“240 Queen Street is already a premium-grade asset, and once the $31 million regeneration works are completed,  it will align the building with the best-in-class market practices and enhance its ESG credentials.” 

Mr Borger believes it is an opportune time to invest in Southeast Queensland, with solid infrastructure and job  growth anticipated in the lead-up to the Olympics and beyond.  

He explained: “Over the next 12-24 months, the arrival of two of the largest pieces of public infrastructure in over  100 years will reshape the Brisbane CBD. The Cross River Rail station at Albert Street and the new Metro on King  George Square will be less than 400 metres from 240 Queens Street and reorientate the city’s centre to a more  central location”. 

“Since 2022, Brisbane CBD has witnessed the highest net absorption of any CBD in Australia, which is driving not  only demand for office space but also fuelling flight-to-quality and competition for premium-grade spaces.” 

Avi Gordon, Head of Quintessential Invest, expressed his enthusiasm: "We are thrilled with the overwhelming  support shown by investors in this milestone fundraising effort.” Mr Gordon thanked existing and new investors for  their continued trust and partnership. 

“The success of this capital raise underscores the compelling investment opportunity presented by 240 Queen  Street and reaffirms the Quintessential strategy of identifying and capitalising on counter-cyclical market  opportunities.” he said. 

Mr Gordon secured $137 million in wholesale capital for this acquisition from private investors. This achievement  marks the country's largest capital raise of its kind in 2024.