Gina Rinehart buys Brisbane office tower for over $100m

Resources tycoon Gina Rinehart has made her first big move into another property market, picking up a Brisbane office tower for more than $100m.

Gina Rinehart has made a big play for the office market in Brisbane.

Resources tycoon Gina Rinehart has made her first big acquisition in the office market, picking up a tower in Brisbane for more than $100m.

The billionaire, who owns some smaller buildings in Perth, has bought the block at 70 Eagle Street, from US funds group Pembroke, as she commits further to Queensland.

The purchase could prove a savvy play for the billionaire, who is already heavily invested in the state, and adds to her portfolio that also includes residential properties in Brisbane and Noosa.

Ms Rinehart’s Hancock Prospecting said it had acquired the premium office building in Brisbane’s highly sought after central business district.

The 14-storey building has about 11,000sq m of office space, with retail offerings on the ground level, plus a private three-level basement car park.

The complex is occupied by superannuation fund QSuper but it is moving out and the complex is likely to be repositioned, and could one day accommodate some of the billionaire’s operations.

Gina Rinehart's Hancock Prospecting has bought 70 Eagle Street, Brisbane

Hancock said the prime location had “excellent connectivity” to transport networks and multiple amenities. ”A building refurbishment program is planned, which will reposition the building and ensure it is a highly attractive location for businesses and visitors,” the company said.

“The acquisition of this property by Hancock is a continuation of its investment in Queensland, where Hancock has extensive investments in energy via Senex, its joint venture with POSCO, along with extensive agricultural operations and a growing Brisbane office,” it added in a statement.

The property was sold via Knight Frank’s Justin Bond, Ben Schubert and Neil Brookes, who had billed it as an extremely rare chance to buy on Brisbane’s Eagle Street.

The city is riding a $45bn infrastructure boom with a series of projects either under construction or in planning as the city readies for the 2032 Olympic Games.

The sale shows that the Queensland capital remains attractive for office players, who are drawn to the higher returns that it offers than Sydney and Melbourne.

The office deal comes atop the billionaire’s extensive interests in rural property and her more recent forays have included assessing the purchase of famed Queensland island resorts, although deals could not be reached.

Buying the office block signals that Hancock Prospecting will look at ways of investing and diversifying its asset base, at a time when resources prices are riding high.

The building last traded in 2014 and the latest sale shows a discount to that price, partly as the tenant is exiting but also showing the tycoon’s capacity to move quickly while some institutions are selling.

Other magnates have also been buying in Brisbane. Billionaire coal baron Sam Chong last month bought another city tower, picking up the Queen St asset from US funds manager Hines for about $140m.

And some are keen to push into new areas.

Andrew Forrest’s property division Fiveight Pty Ltd has been negotiating the purchase of the yet to be built Waldorf Astoria hotel fronting Sydney’s Circular Quay, which would smash records on a rate per room basis.