Brisbane office and retail complex changes hands for $55m
1 Breakfast Creek Road, Newstead: a mixed-use asset in inner-city Brisbane.

Brisbane office and retail complex changes hands for $55m

Interests associated with Bloomberg Incorporation, a private investment platform which owns Brisbane’s Riparian Plaza, have snapped up another mixed-use property in the inner city for about $55 million.

The acquisition by Bloomberg Incorporation Limited – a family-owned platform which is not associated with the famed Bloomberg company in the US – of 1 Breakfast Creek Road in Newstead was struck on an initial yield of 6.3 per cent.

It includes two buildings – an A-grade office tower and a retail annex – standing on a site of close to 6000 square metres. Designed by architects Cox Rayner, the complex comprises nearly 7000 square metres of office, retail and services spaces over five tower levels, along with a single-level retail building. A recent upgrade has improved ground-floor amenity, including a new cafe and refreshed landscaping.

The deal comes as the city hopes to woo more investment into commercial and residential real estate in the lead-up to the 2032 Brisbane Olympics. Along with smaller deals, such as the $46.5 million suburban office block sold last week by the Roberts family-backed RF Corval, big institutions and fund managers are also pursuing significant developments in the CBD and inner city.

The latest deal was finalised by Cushman & Wakefield’s Jonathan O’Brien, Mike Walsh, Peter Court and Frederic Le Fanue and CBRE’s Bruce Baker, Jack Morrison and Adelaide O’Brien on behalf of a Gold Coast-based private investor.

Cushman & Wakefield’s Mr O’Brien said the combined precinct of Newstead/Gasworks and Fortitude Valley was winning substantial institutional investment while attracting large corporate and multinational occupiers.

“The immediate precinct has enjoyed substantial institutional capital investment with over $2 billion in transactions occurring in the area over the last five years,” he said.

CBRE’s Mr Morrison said land-rich assets had additional appeal, such as the site at 1 Breakfast Creek Road.

“This transaction follows the trend of private investors picking up high-profile assets in inner-city Brisbane ahead of the anticipated growth of population and employment base,” he said.

But the interests of existing investors can sometimes clash with the fresh wave of development capital flowing into the city.

Last year, as Riparian’s owner, Bloomberg launched a legal challenge over Dexus’ proposed Waterfront Brisbane development, which will feature 49-storey and 43-storey towers, restaurants and bars, a six-metre-wide promenade and a new 280-metre river walk leading to the city’s botanic gardens.

Major corporates Deloitte and MinterEllison have already signed up as anchor tenants for the $2.1 billion

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