Telco dials up interest as Japanese investors answer capital call

The sale of a stake in a $300m Brisbane tower could continue a recent run of major office deals in the city.

A Japanese corporation is looking to add to its local property empire by taking a half stake in a $300m Brisbane office block in one of the city’s biggest trades this year.

Telecommunications giant Nippon Telegraph & Telephone Corporation, advised by Realmont Property Partners, is targeting the purchase of the 50 per cent interest in 53 Albert St, which JPMorgan Asset Management is looking to offload.

NTT set up in Australian property in 2011 and runs a housing development business in Melbourne. It shifted into office owning with the purchase of block in Canberra in 2019, and also acquired a building in Melbourne.

The Brisbane deal could spark further activity in the CBD with buyers active despite the tougher interest rate environment.

The JPMorgan unit put the tower on the market back in March, when a wave of buildings hit the block in Brisbane. Many did not find buyers as interest rates hikes hit mid-year, but a deal on the Albert St offices could signal a reopening of the market.

JPMorgan expected offers of more than $300m for the prime-grade complex which occupies a 2322sq m corner site in the centre of Brisbane, straddling the city’s financial core and government precinct. The 22-storey tower has a weighted average leasing expiry of 6.5 years by income.

The Queensland government occupies all 12 floors of office space, accounting for 18,694sq m, on a lease running to January 2028. Nine levels and 531 bays of carpark sit below that, leased by First Parking until October 2030.

With major infrastructure and development projects under way – including the Cross River Rail Albert St Station across the road and the Queen’s Wharf development nearby – 53 Albert St is positioned to benefit from more than $12bn of projects.

CBRE’s Bruce Baker, Flint Davidson and Stuart McCann are handling the sale but declined to comment.

The government recommitted to an additional six-year term, highlighting its strong commitment to the asset and location.

Others buildings are also selling, with the listed Growthpoint Properties Australia last week selling 333 Ann St in the Brisbane CBD for $141.1m. It was picked up by the unlisted RAM Australia Diversified Property Fund.

Growthpoint managing director Timothy Collyer said the multi-tenanted property was fully leased, and had a weighted average lease expiry of 3.7 years.