Clarence Property Secures Brisbane CBD Office Tower for $119 Million

WORDS: Ocean Road Magazine Editorial Staff PHOTOGRAPHY Supplied

Clarence Property has acquired 120 Edward Street, an A-Grade office tower in Brisbane’s CBD for $119 million from global real estate investment manager – DWS, through its flagship Clarence Property Diversified Fund.

Developed in 2001, the 15,161sqm property over 18 levels has been through an extensive upgrade program in recent years and is 98% leased.

Ben Somerville, Head of Capital Transactions, said Clarence Property remains cautiously optimistic about the year ahead despite the headwinds impacting the property sector.

“We have certainly seen a softening of yields in the office market nationally, but the Brisbane CBD transaction provides a strategic holding in a market that continues to show remarkable strength,” said Mr Somerville.

CBRE Queensland Senior Managing Director, Bruce Baker and Queensland State Director, Peter Chapple commented that Brisbane’s strong leasing market and rising activity in the Asia Pacific supported significant interest in this A-Grade office block.

Clarence Property is a long established fund manager and developer targeting the high-growth areas of South-East Queensland and Northern NSW.

“This acquisition represents a strategic counter-cyclical play in a market that we believe is well placed for the future,” said Simon Kennedy, CEO, Clarence Property.

“The property has been acquired at well below replacement cost and the resilience we have seen in Brisbane in recent years positions it as one of the standout office markets nationally.”

Through its flagship fund, the company invests in retail, commercial, medical, industrial and childcare assets, as well as rural and residential sub-division investments, through which the group aims to deliver monthly distributions over the long term for its investors.

Peter Fahey, Clarence Property Chairman said “It’s an exciting time for Clarence Property with the purchase of this significant asset to add to our already extensive portfolio”.