Property Buzz

Money & market

Alceon Qld makes strategic $73 million acquisition in Brisbane’s CBD


Alceon Qld, an alternative investment manager, has expanded its property portfolio with the acquisition of a commercial car park and office building in Brisbane’s CBD, purchasing the asset for $73 million.

The property, located at 40 Tank Street, aligns with Alceon’s investment approach of identifying commercial and social infrastructure assets that are undervalued for potential growth through active management.

According to Alceon’s analysis, Brisbane’s CBD market is uniquely positioned, being the only Australian city where the secondary market sees tighter constraints than the prime market, indicating potential for overall rental growth that may push existing tenants towards upgrading their premises.

The Brisbane CBD has also demonstrated a tight control over the introduction of new office space since 2017, which has not been the case with Sydney and Melbourne. This management of space has resulted in higher net absorption rates for Brisbane, showing a strong demand for office property in the city.

During the due diligence phase for this acquisition, lease agreements were negotiated with current tenants, securing the Queensland Police Service through 2028, which generates 52.4 percent of the property’s income, and CarePark until 2031, accounting for 43.8 percent of the income. These agreements have improved the WALE for the asset to more than 5.5 years.

The property is notable for its high ESG standards, having achieved a 6-star NABERS energy rating. It encompasses five levels of office space, totalling 5,906 sq m in net lettable area, includes 327 parking bays, and has 312 sq m allocated to street-level retail space.

Todd Pepper, Founder and Executive Director at Alceon Qld, remarked on the acquisition’s merits, citing Brisbane’s limited supply and expected rental growth due to increased construction costs.


Brisbane’s CBD has a Property Council of Australia’s vacancy rate for B-Grade assets at 9.9 percent, which is below the average rates seen in Sydney and Melbourne’s respective CBDs.

Pepper also highlighted particular attributes of the asset that cater to the needs of its tenants, such as proximity to law courts and cultural precincts, and the potential for future development given its comprehensive town planning permissions and proximity to the anticipated 2032 Brisbane Olympic Games.

The asset’s car park also represents a valuable piece of social infrastructure, as indicated by its scarcity within the legal precinct and broader CBD.

This acquisition by Alceon Qld reflects the company’s confidence in the long-term growth and stability of the Brisbane CBD office market, emphasizing the strategic value of the 40 Tank Street property and its reinforcement of Alceon’s investment thesis.

Previous post
Next post
Leave a Reply

Your email address will not be published. Required fields are marked *