Cromwell accepts small discount for office
Cromwell Funds Management has sold a sprawling inner north Brisbane office for $500,000 less than it paid in late 2017 – a property cycle peak.
Following an off-market deal, it is pocketing $41.5 million for 433 Boundary Street, Spring Hill.
It paid Alceon $42m – a 6.7 per cent net passing yield.
With 5992 square metres of A-grade space over three floors, International Education Services, or IES, is the occupier; it is a campus certified for 961 students.
The weighted average lease expiry is about eight years.
There is also a 118-bay car park operated by Wilson Parking, accessed from Fortescue St (story continue below).
Zoned District Centre 1, 500 metres from Central station, the 3776 sqm parcel holds significant development upside, opposite a 16 storey apartment tower.
“The sale signifies the ongoing demand for offices in Brisbane’s near-city, particularly those assets that offer existing cash flow with medium term value add opportunity,” JLL’s Elliott O’Shea, who represented Cromwell with Seb Turnbull and Marshall Smith, said.
The buyer is a local investment group.
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