Building sale underpins investor confidence in Cairns CBD

A Cairns city building that’s been home to the Commonwealth Bank since its construction in 1991 has sold for a seven figure sum.

The Lake Street Commonwealth bank building has sold to Natgen for $5.25m.

A Cairns city building that’s been home to the Commonwealth Bank since its construction in 1991 has sold for a seven figure sum.

Brisbane-based property fund manager Natgen has increased its Queensland office portfolio with the successful acquisition of the Lake St building for $5.25m.

Acquired for Natgen Investment Trust QC24 after being on the market for six weeks, the two-storey CBD office and retail building is home to the sole Cairns branch of the Commonwealth Bank along with smaller office tenancies on the upper level.

Natgen managing director and responsible manager Steven Goakes said the company will actively manage the trust for an anticipated five to six years.

The Commonwealth Bank Building at 76 Lake St has sold.

“Natgen’s acquisition strategy for this trust is to buy office assets in prime locations in regional cities of Queensland,” he said.

“Our income trust investors want long-term income returns and capital growth prospects, and we think that 76 Lake Street offers both.

“We are happy to keep CBRE Cairns as the manager of the building and work with them to implement our planned building enhancements.”

Post-pandemic, Mr Goakes said Queensland continues to benefit from ongoing population growth, together with the attraction of lifestyle destinations within coastal areas such as Cairns.

He said the exodus of workers from metropolitan city centres was not a trend in the wake of Covid at smaller regional centres as workers in the big cities look to alternative work settings to avoid an often lengthy commute to work.

“Travel time to regional office localities is far less than (metro city) locations,” he said.

“Despite modern work habits, the office remains the main workplace for many workers and is far from obsolete.”

The most regionalised state in the nation, Queensland has important business centres stretched along the coast, from the Gold Coast in the south to Cairns in the Far North, according to Natgen.

The Commonwealth Bank building was sold by Hyatt Property (Cairns) Pty Ltd after being acquired from Mineral Resources Lihir Pty Ltd for $4.2m in 2020.

Follow @petercarruther1

Originally published as Building sale underpins investor confidence in Cairns CBD