Australian-owned asset manager, Real Asset Management (RAM), has secured a modern 23 story A-grade office tower located in the heart of Brisbane CBD at 333 Ann Street for $141.1 million.
The new generation office tower was sourced off-market on attractive terms including a passing yield of 7.03%. The building has a 4.15-year WALE, comprises a 16,301 sqm NLA and is 100% leased to top tenants, including the Federal government and one of Australia’s leading superannuation groups.
RAM was attracted to the high-quality Queensland asset as the state has a strong economic outlook and leads the charge in Australia’s economic recovery with nation-leading jobs growth and interstate migration fuelling historically high levels of population growth.
Prominently positioned less than 150m away from Brisbane’s Central Rail Station, 333 Ann Street’s tenants enjoy unmatched access to Brisbane’s most important piece of public transport infrastructure. Centrally situated in the 2032 Olympic Games host city, Ann St is well positioned to benefit from the enormous infrastructure investment and the expected social and economic benefit the games will drive.
RAM Head of Real Estate, Matthew Strotton, said, “The asset will become the fifth in the RAM Diversified Property Fund, an unlisted property fund targeting a diversified and defensive property portfolio, which has total commercial real estate assets valued at almost half a billion dollars in four states”.
Mr Strotton said, “This attractive deal is accretive to fund WACR, it 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”.
“We are at a point in the cycle where taking a position in pre-existing, well-let assets with long-term contracted income is very attractive. But more importantly, 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.