Quintessential doubles money on Brisbane office sale
AUSTRALIAN FINANCIAL REVIEW
2 JULY 2019
Quintessential Equity has sold a Brisbane office property for $25.23 million – more than double what it paid for it less than two years ago – after turning around an 80 per cent vacancy rate.
The Melbourne-based fund manager and developer purchased the mostly vacant four-storey office building at 8 Gardner Close in Milton on the CBD fringe for $10.63 million in August 2017.
By November last year, Quintessential had fully leased up the 4270sq m office building following a multimillion-dollar upgrade that included adding new end-of-trip facilities and improvements to the lifts, lobby and services.
The buyer, acquisitive Adelaide-based syndicator Harmony Property Investments, acquired 8 Gardner Close on a yield of 7.11 per cent.
Acquisition manager Cain Gurney said 8 Gardner Close was the first office building bought by HPI in the recovering Brisbane market.
Quintessential Equity CEO Russell Bullen said the Brisbane office sale represented an excellent return for investors and was testament to the quality of the regeneration work carried out.
“The strong underlying attributes, including excellent amenities, carparks and an accessible location, have made 8 Gardner Close a very attractive proposition for tenants, helping us to reach full occupancy in just over a year,” Mr Bullen said.
The property was marketed by Justin Bond from Knight Frank and Nick Spiro from Cushman & Wakefield Brisbane.
Mr Bond said there was strong investor interest in the property, a reflection of the positive sentiment that now exists in Milton where transaction volumes rose 62 per cent to $100 million over the past 12 months.
“This increase in transactions is primarily due to the renewed investor confidence in Brisbane’s western corridor and the fact the Milton market is in recovery mode, with vacancy forecast to decrease below 17 per cent in July 2019,” he said.
“Quintessential Equity did a fantastic job with how they presented the asset; it has no capital expenditure requirements for the years ahead, which is an attractive feature from an investment point of view,” Mr Spiro said.