Listed property group Propertylink has acquired a government-leased office in Brisbane for $145 million in a partnership with investment bank Goldman Sachs.
Propertylink acquired a 25 per cent share in the 25-storey office at 50 Ann Street through an expansion of its Propertylink Enhanced Partnership fund.
Brisbane’s State Law Building at 50 Ann Street. Photo: Photographer: Jan Tkaczyk
“Assets under management in relation to the expanded PEP mandate will increase to $293 million following completion of the Ann Street purchase,” Propertylink said.
The modern office is fully leased to the Queensland government, but has only 3½ years remaining on the lease.
As a result, the purchase reflected a competitive core market yield of 8.18 per cent.
“This transaction provides us with an opportunity to acquire a high-quality asset in a commercial market showing signs of recovery and experiencing a strong turnaround in demand,” the group’s head of property Peter McDonald said.
The office has a total lettable area of 25,519 square metres on a 2198 sq m corner site in the northern “legal precinct” end Brisbane’s CBD.
Propertylink has about $1.2 billion funds under management, with about $725 million of that in office assets, most of which is in Sydney’s strong office market.
Settlement of 50 Ann Street was expected in May.