Home World Business Propertylink snaps up $145m Brisbane office tower

Propertylink snaps up $145m Brisbane office tower

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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. 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.

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