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Cromwell snaps up Queen St office tower in fresh boost to CBD

Business

Cromwell’s direct property fund has bought 545 Queen St for $117.5 million in a further sign of confidence in the CBD market.

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The deal follows the sale recently of 10 Eagle St, known as the Gold Tower, for $285 million to Marquette Properties, a fund that was banking on a surge of demand as the economy recovers and workers return to the CBD.

Cromwell’s purchase gives a foothold in the CBD’s golden triangle as well as property tenanted by Sonic Healthcare, the Federal Government and Calibre Professional Services.

Cromwell’s head of retail funds management Hamish Wehl said it was a challenge in the current interest rate environment to find investments that meet the income needs of investors.

He said 545 Queen St fit the profile of the direct property fund and its 5.8 per cent yield.

“Cromwell is actively seeking additional assets that will help DPF meet its objectives and benefit unitholders further,” he said.

The deal was negotiated by CBRE and its senior managing director in Queensland, Bruce Baker, said there had been a strong increase in buyer demand for high quality, multi-let office towers.

He said investors were backing a flight to quality by tenants who wanted to upgrade their office.

 

 

 

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