The City of Brisbane Investment Corporation buys Gosford ATO for $43.5 million

Posted by | May 7, 2018 | Community, Industry News, News

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The City of Brisbane Investment Corporation, Brisbane City Council’s future fund, continues its acquisitive streak, emerging as the buyer of the A-grade purpose-built Australian Taxation Office building complex in Gosford in Sydney’s central coast.

CBIC bought the completed property at 99 Georgiana Terrace and 38 Mann Street from Canberra-based developer and owner Doma Group for $43.5 million.

Doma Group was shopping for a buyer prior to the property’s completion last year, as foreshadowed by The Australian Financial Review.

Coinciding with the sale of the 7380sq m office building and two-storey heritage building at 99 Georgiana Terrace and 38 Mann Street, the ATO has also completed its move into the building.

The ATO has been moving into the building progressively since late last year, and completed occupation last week. It will lease the property for 10 years.

The sale of the property, which went through a tender, closed at a 6.9 per cent passing yield.

Colliers International’s Paul Powderly, James Barber and Adam Leacy brokered the deal.

The property drew strong interest given its long government tenure.

With yield compression in commercial property at record lows, local and foreign investors are focusing on quality and tenure of tenant to secure strong long-term cash flows.

The CBIC, which at times drew criticism for its property investment activity, previously invested in commercial property until 2014 until it branched out into ­residential and retail development. It was set up in 2008 by Campbell Newman when he was ­Brisbane Lord Mayor.

Like all investors, the CBIC has traded other buildings as part of a capital recycling strategy such as the sale of the Bowen Hills commercial complex at 41 O’Connell Terrace for $52 million in 2016.

 

Source: http://www.afr.com/real-estate/the-city-of-brisbane-investment-corporation-buys-gosford-ato-for-435-million-20180430-h0zfze

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