This article originally appeared in Australian Property Markets.News.
Growthpoint has confirmed the exchange of contracts to sell its 100% freehold interest in 333 Ann Street, Brisbane, Queensland for $141.1 million.
The property was acquired by Real Asset Management.
The 2008-built tower provides 16,302 sqm of NLA and is leased to tenants including Federation University, Brighter Super and the federal government, offering a WALE of 3.7 years.
CBRE’s Bruce Baker and Peter Chapple brokered the transaction.
RAM chief executive Scott Kelly said the fund manager had capitalised on a short “window of opportunity” before commercial property values rise again.
Growthpoint anticipates settlement to occur by the end of 2022, subject to FIRB approval being obtained.
Timothy Collyer, Managing Director of Growthpoint, said, “On careful consideration, Growthpoint has decided to divest 333 Ann Street, located in Brisbane CBD. The multi-tenanted property is fully leased, and at 30 September 2022 represented 3.6% of portfolio income and 2.6% of our portfolio by value, with a weighted average lease expiry of 3.7 years.
“Growthpoint’s directly owned office portfolio is focused on modern A-grade assets with high green credentials, located on the fringe of CBD or in metro locations, and predominantly leased to government, listed or large organisations. Divesting 333 Ann Street, the Group’s only ‘true’ CBD asset, further focusses the Group’s portfolio on these resilient and well performing markets. Growthpoint is the largest ASX-listed landlord focussed on fringe and metropolitan market office assets.”
Growthpoint have said that the proceeds will be used to pay down debt.