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Brisbane office tower changes hands for $141.1M

This article originally appeared in The Property Tribune.

A 23-storey Brisbane office tower has been acquired by Australian-owned asset manager, Real Asset Management (RAM), following a $141.1 million off market deal.

The building at 333 Ann Street has a 4.15-year WALE and comprises a 16,301 sqm NLA. The asset is fully leased with tenants including the Federal government and superannuation groups.

RAM Head of Real Estate, Matthew Strotton, said that this asset will become the fifth in the RAM Diversified Property Fund. The unlisted fund’s total commercial real estate assets are spread across four states and valued at almost half a billion dollars.

“This attractive deal is accretive to fund weighted average credit rating, increases exposure to the high growth Brisbane market, is in a desirable CBD location and provides access to strong contracted rent growth as well as potential value-add opportunities,” Mr Strotton said.

Tenants of 333 Ann Street enjoy easy access to transport with the building positioned less than 150m away from Brisbane’s Central Rail Station.

Since Brisbane was selected as the host of the 2032 Olympic Games, investors have been buying into the city in hopes of benefiting from the planned infrastructure investment.

RAM also cited Queensland’s robust economic performance and strong population growth as key reasons for being attracted to the Brisbane market. The latest population data released by the ABS places Queensland as the state with the highest growth rate, 1.8% over the year to March 2022.

Net interstate migration was the major contributor to population change in Queensland.

“RAM, as an active manager, continues to pursue opportunities to further diversify and enhance both income and longer-term growth prospects of the portfolio under management,” Mr Strotton said.

RAM anticipates settlement to occur by the end of 2022 subject to FIRB approval.