Swiss-based company set to buy in South Brisbane

2015-09-21--notwCommercial property news from Queensland is that Credit Suisse Asset Management is set to buy a South Brisbane office tower at 99 Melbourne Street for between $38 and $40 million.  In a sale arranged by Bruce Baker and Flint Davidson of CBRE Brisbane, though not yet confirmed, the vendor was Primewest Funds Limited as trustee for the 99 Melbourne Street Unit Trust. Primewest Funds is a private, unlisted property fund manager founded in 1994 by John Bond of Peppermint Grove, Jim Litis of Applecross, and David Schwartz of Dianella.

Primewest is a national wholesale property syndicator and developer with a portfolio of over $2 billion.The purchaser, Credit Suisse, a Swiss-based financial services holding company, was founded in 1856 and provides products across a range of specialist investment classes, including hedge funds, credit, private equity and commodities.

According to South Brisbane Cityscope, 99 Melbourne Street is a five storey office building with ground floor retail space.It was completed in 2004 at a cost of $22 million and both its builder, Abigroup, and developer, Leyshon Developments, won awards for the project. The building has a net lettable area of 6,000 sqm and a 5-star NABERS rating. Its tenants include the headquarters of Stockland plus Aspec Engineering, Austcover, Lumley Insurance, Sibelco Australia and Wesfarmers.

The property last traded at $28.5 million in 2010 and was advertised for this sale with an income of $3.23 million (net). It was sold on yield of between 7.75 and 8.5 per cent.

 

Meredith Baume
Commercial Research

 


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CoreLogic RP Data Commercial Cityscope is a web-based service. Access is sold by geographic regions (Cityscope areas). There are 25 geographic regions across Australia (three in New Zealand), clustered around the cities of Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra and Newcastle. Darwin and Hobart CBD centres aren’t covered. Cityscope Areas in NSW and QLD also include lease expiry data for the most complete commercial coverage available. For more information call 1300 734 318.

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