In a notable real estate transaction, a local private investor has made a significant acquisition, purchasing a new commercial property within the Brisbane Technology Park for a sum of $23 million. This transaction consolidates Brisbane Technology Park’s status as the city’s premier business district.
Located at the strategic address of 5 Miles Platting Road, the facility boasts an ample Net Lettable Area of 2,973 square meters, situated on a 2,503-square-meter site. The park itself is conveniently located a mere 15-minute journey from Brisbane’s CBD. The property features an abundance of facilities, including 100 dedicated parking spaces, and is fully leased to the community-service organization Anglicare under a 10-year whole-of-building net lease.
This deal signals another success for Mike Walsh and Peter Court from Cushman & Wakefield, who have exclusively negotiated several key suburban office park transactions this year, amounting to over $55 million in sales. This includes the previous sales of 35 Miles Platting Road within the same park for $13.55 million, and 381 Macarthur Avenue for $18.5 million.
Commenting on the trend of suburban office park transactions, Mike Walsh, Co-Head of Middle Markets QLD at Cushman & Wakefield, offered insights into what drives their popularity: “These deals reaffirm the outperformance of these parks, attributed to the cost-effective value proposition they offer, compared to immediate inner-city options. Additionally, the above-average car parking ratios and strategic access to major transport nodes further contribute to their appeal.”
Walsh also highlighted the shifting pricing trends over the year, remarking, “Clearly there has been a material shift in pricing over the course of this year, however the yield achieved on this deal highlights the fact that capital remains drawn to assets underpinned by blue chip covenants and long tenure when you consider where the current 10 year bond rate sits and the relevant risk premium investors would typically apply to direct real estate.”
With private buyers leading the market as the year comes to an end, the latest acquisition by a local family syndicate exemplifies the growing investor interest in Brisbane’s property market. Walsh underscores the significance of the transaction, noting “This buyer, in particular, is a returning client, having acquired another property from us earlier in the year. It underscores the thematic that private investors are looking to capitalize on a thinner buyer market with the majority of listed groups focused on rebalancing their portfolios with divestments.”
Brisbane Technology Park continues to strengthen its role as a prime destination for investors looking for high-yield opportunities, bolstered by its strategic location and sound tenancies evidence of the city’s booming infrastructure and business landscape.