Lendlease sells Brisbane office tower for $380m

Lendlease offloads co-owned office tower in Brisbane’s CBD to German investment firm Deka for $380m.

The Brisbane CBD. Picture: iStock

Lendlease has offloaded its co-owned office tower in the heart of Brisbane's CBD to German investment firm Deka Immobilien Investments for $380 million.

The offer on the A-grade asset at 66 Eagle St was $10m above market expectations.

Equal co-owners Lendlease’s Australian Prime Property Fund (APPF) Commercial and Middle Eastern sovereign fund Abu Dhabi Investment Authority (ADIA) listed the tower in September.

Brisbane’s strong office market credentials and the prime location of the 32,000 sqm asset within the CBD’s prized “golden triangle” saw Deka enter into due diligence in November.

APPF Commercial fund manager, Micah Schulz, said the competitive sale is in line with the fund's overall strategy of investing in growth areas.

“The strategic divestment of our interest represents a strong result for the fund. The dynamics of the workforce are evolving and as commercial tenants look to attract and retain the best talent, we will continue to invest in next generation precincts with a strong focus on customer experience,” Mr Shulz said.

“These precincts are highly attractive to tenants and their employees as increasing value is being placed on convenience, technology, sustainability, wellbeing and community in the workplace.”

Cushman & Wakefield and JLL brokered the deal.

ADIA initially moved to shed the asset in July, with APPF declining the offer to buy out the 50 per cent share.

The sale is a good start to the year for the German firm, which has previously been active in the Australian market.

In February 2018, Deka snapped up a majority of the Sydney building that houses luxury retailer Bvlgari for about €36m ($56m). It also backed Armada Funds Management’s purchase of a Canberra shopping centre, which sold for around $120m.

Sustainability and amenity was integrated into 66 Eagle St throughout Lendlease and ADIA’s ownership, including a lobby with a breathing wall, new cafe and premium-grade end-of-trip facilities.