Savills : 12 Cribb Street Sells for $12.88 Million

Revitalisation of city fringe suburbs continues to drive commercial sales

The revitalisation of Brisbane's most established inner city office market, Milton, has underpinned the sale of a fully leased five-level commercial office building at 12 Cribb Street to a private investor for $12,881,500, representing an initial yield of 6.78%.

JLL's Sam Byrne and Christian Sandstrom, together with co-agents Anthony Ott, Peter Chapple & Nick Russell from Savills, negotiated the sale on behalf on the Harvest Denison Opportunity Fund #2, after an Expression of Interest campaign that attracted interest from local and domestic investors.

Mr Byrne said the property was acquired by a Sydney-based family that recognised Brisbane as a market which still reflected good value and long term growth prospects, relative to the Sydney commercial market.

'The acquisition of 12 Cribb Street is another example that interstate and off-shore investors recognise Milton as an established near-city office precinct which has undergone a significant transformation in recent years with the completion and current construction of a number of large scale residential towers; along with the associated rejuvenation of the precinct spreading from the renowned Park Road dining precinct to the Milton Markets behind Milton Train Station and Suncorp Stadium,' Mr Byrne said.

Savills Nick Russell added the sale is the result of a well-executed refurbishment and leasing campaign implemented by an experienced vendor, providing further evidence of the demand for fully leased, prime positioned, near city property in Brisbane.

Located on Cribb Street, within the established Milton commercial precinct, the 1,194sq m site offers 3,310sq m of net lettable area in one of the more stylish buildings in the Milton commercial area. The building has typical floor plates of 730sq m in a rectangular configuration, maximizing space efficiency and natural light penetration.

The property boasts five floors of modern quality office accommodation, each with its own kitchen facility and separate shower amenities on the ground floor, two ground floor showroom tenancies and basement car parking for 54 vehicles.

12 Cribb Street has a WALE of 3.5 years by income, with staggered lease expiries over the next 7 years. The asset is underpinned by strong tenant covenants in: MCJV, a key contractor of the Australian Pacific LNG Pipeline project; Worldwide Printing Solutions, an innovative graphic design and printing service company; Upstream (a Fuji Xerox Company), experts in document management, content and print solutions; SureBridge IT, a Brisbane-based IT cloud and managed services, hardware and maintenance specialist; Hannahs, New Zealand's most famous footwear brand with 52 stores- with 75% of the income being generated from national brands.

The asset enjoys direct access to retail amenity and public transport with the Milton Train Station, Park Road retail precinct, Milton ferry terminal, and The Barracks retail precinct all within walking distance.