Centuria Capital Group secures Brisbane Northshore office building in $19 million-plus deal

A Sydney-based fund manager has swooped on a newly-developed office building within Queensland’s largest waterfront urban renewal precinct amid rising demand for prime office space.

The newly-developed, three-level office building at 381 Macarthur Ave in Brisbane’s BTP Northshore Hamilton precinct.

A SYDNEY-based fund manager has swooped on a newly-developed office building within Queensland’s largest waterfront urban renewal precinct amid rising demand for prime office space.

Centuria Capital Group has secured the three-level, A-grade office building developed by Alceon Graystone in a $19.74 million deal on a 7 per cent yield.

The 2847sq m asset at 381 Macarthur Ave in Brisbane’s BTP Northshore Hamilton precinct has a 5.1-year weighted average lease expiry.

Settlement is expected by the end of May.

Centuria Capital Group has secured the three-level office building at 381 Macarthur Ave in Brisbane’s BTP Northshore Hamilton precinct on an initial yield of 7 per cent.

It is the first direct property acquisition by the open-ended and unlisted Centuria Diversified Property Fund.

Centuria’s head of real estate and funds management, Jason Huljich, said the acquisition was in line with the fund’s strategy.

“We have always intended to acquire direct assets for the fund, and 381 Macarthur Ave is a high-quality, well-located asset with financially strong tenants,” he said.

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Mr Huljich said he expected increasing investor demand throughout southeast Queensland, including Brisbane.

“The fund’s exposure to Queensland follows our view that Brisbane office markets are steadily improving,” he said.

“In the last half we’ve seen yield compression, vacancy rates at five-year-lows, and rising demand for prime office — trends we expect to continue.”

Inside the office building at 381 Macarthur Ave in Brisbane’s BTP Northshore Hamilton precinct.

Sam Biggins, Jason Lynch and Don Mackenzie from Colliers International were appointed to jointly market the property with Savills’ Peter Chapple, Jack Morrison and Daniel Pepper.

Mr Biggins said the i­­­­­nvestment by Centuria was “an endorsement of the institutional quality of office assets being delivered in BTP Northshore Hamilton” and “a sign of faith” in the rising Brisbane metropolitan office market.

The asset occupies a prominent location in Northshore — the transformation of 60ha of State-owned industrial port land into a vibrant $5 billion mixed-use destination with many small-to-medium enterprises 6km from Brisbane’s CBD.

“This makes it a good fit for Centuria’s active management approach, demonstrated by the fact that Centuria’s Metropolitan REIT owns a nearby property at 483 Kingsford Smith Drive,” Mr Huljich said.