Fairfax family to offload prime Brisbane development
The Fairfax family’s investment vehicle Cambooya is selling its Waterloo Junction development in Brisbane which could reap as much as $50 million.
The 6500-square-metre property, which serves as the headquarters to listed construction group Watpac, was purchased by the Fairfax family business for about $37 million in 2011.
The company took the six-storey A-grade commercial office tower, as well as the fully refurbished Waterloo Hotel, which included a 20-year lease to Coles subsidiary Liquorland.
Cambooya chief investment officer Matthew Wacher confirmed the Fairfax family owned company would now look for a buyer in what is a strong commercial property market.
“For us we think the market is getting a bit expensive and it’s not just property. And we are into capital preservation,” Mr Wacher said. “The property requires significant asset management so there is plenty of potential for people to do more with it from that asset management perspective.”
Brisbane’s near city has seen a strong market for assets including South Korea’s Teachers Pension fund purchase of the Industry Superannuation Property Trust’s Green Square office building in Fortitude Valley for more than $200 million.
Other investors such as Moelis Australia Asset Management and Marquette Properties have also been buying in the near-city market of Brisbane with the $30 million purchase of 164 Grey Street in South Brisbane.
Investec and Abacus also spent $132 million buying an office tower in Brisbane CBD despite high vacancy in that market.
Cambooya’s property at 12 Commercial Road, Newstead, is in the middle of prolific apartment development that has been taking place in the inner-Brisbane market.
Cambooya, named after the country town near Toowoomba, is expected to appoint agents JLL to start marketing the asset soon.
A price of between $46 million and $50 million could be fetched for the asset.
