Boutique investment firm OzProp Capital has bought a Fortitude Valley office building with potential to value add

A Queensland-based investment firm has increased the value of properties under management to $160 million after buying a Fortitude Valley office building

OZProp Capital paid $5.9 million for this office building at 100 Brunswick St, Fortitude Valley

BOUTIQUE investment firm OzProp Capital has added to its portfolio with the purchase of a Fortitude Valley office building. with value add potential

The Queensland-based company paid $5.9 million for the fully-leased two-level building at 100 Brunswick St in a deal that realised a an initial net yield of 7.2 per cent.

OzProp co-founder Jorgen van Seters said since the group started in 2008 it has had more than $200 million in transactions and the latest acquisition brings total assets under management to more than $160 million.

“The latest acquisition reflects our strategy of delivering sound income yields with the strong prospect of capital growth and the capacity to create additional value for our investors,” he said.

The property forms the centre piece of the OzProp Trust 23 and its equity raising closed early and oversubscribed.

The 1050sq m building was refurbished in 2015 and has twin vehicle access points and includes 18 on-site car parks.

It carries a development approval to increase the floor area of the building by almost 50 per cent with flexibility to accommodate a higher density mixed-use development.

Tenants are engineers Premise and the Australian College of Technology and Business.

It was sold on a weighted average lease expiry of 3.2 years through Ray White Commercial’s Jared Doyle or Jack Gwyn.

According to CoreLogic it last changed hands in 2015 for $4.1 million.

The transaction is OzProp’s third this year following the successful acquisition of the Home Central Retail Centre in Coffs Harbour for $11.75 million on a net passing yield of 7.7 per cent and a cold-storage logistics facility in the Yatala Enterprise Area for $22 million at an initial net yield of 8.1 per cent.