Gold Tower sale a test for COVID-19 Brisbane CBD office market

Once Brisbane’s tallest building, this 32-storey office tower is set to hit the market in what will be a big test of the recovery of the CBD property market as it emerges from a COVID-19-ravaged year.

The embattled Brisbane CBD office market will be under heavy scrutiny with one of its renown Golden Triangle towers put on the market.

Property group Dexus and its office partner are seeking to sell their 32-level, A-grade “Gold Tower” on an island site at 10 Eagle Street.

When completed in 1978 it was Brisbane’s tallest building and there are expectations it could sell for up to $300m.

However, in a year where COVID-19 has battered confidence in the office sector — with thousands of workers electing to work from home — the campaign is a test of the Brisbane CBD market going forward.

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Knight Frank’s Justin Bond, who is selling the tower with Savills’ Anthony Ott, said

it was the most significant investment opportunity to be offered to the Brisbane market in 2020.

“While investor interest in Brisbane has continued during COVID-19, there has been limited availability of quality investments for sale,” he said.

“No institutional office transactions have occurred within the Brisbane CBD since the sale of 66 Eagle Street in late 2019.

“As such this asset is expected to attract strong pent-up demand from both offshore and domestic investors, with the biggest drawcards being the prime Eagle Street position, diverse income profile and future development upside.”

The Gold Tower at 10 Eagle Street in the Brisbane CBD.

According to CoreLogic the property last changed hands in 2012 for $195m.

The campaign comes after private equity-backed logistics platform ESR put the State Law Building at 50 Ann Street back on the market.

At the start of that campaign — which closed at the start of November — there were expectations the A-grade, 25-storey tower could sell for as much as $275m.

Mr Ott said the Gold Tower’s location in the heart of the Golden Triangle and occupying a premium position along the tightly held Eagle Street, presents a rare opportunity for investors.

“Investors will be drawn to not only the premium location, but the future development opportunity to add another building on the site or perhaps extend the floor plates.

“The property is in proximity to all the major CBD infrastructure projects in Brisbane, with $12.8 billion in developments within a kilometre radius, underpinned by the Cross River Rail and the waterfront precinct redevelopment.”

“The building is already surrounded by significant amenity with popular shopping, entertaining and dining precincts in the vicinity including Eagle Street Pier, Queen Street Mall and the Edward Street retail hub, with public transport, including the ferry, bus and train, also nearby.”