Deal of the Week: Stockland’s Brisbane HQ sold to Credit Suisse

Credit Suisse Asset Management has reportedly acquired Stockland’s Queensland headquarters in South Brisbane for about  $40 million.

According to the Australian Financial Review, the sale of 99 Melbourne Street property for between $38 and $40 million will deliver vendor Primewest Management a 35 per cent gain in just five years.

The transaction, brokered by CBRE’s Flint Davidson and Bruce Baker, was reportedly negotiated on a yield of between 7.75 and 8.5 per cent.

The Western Australia-based Primewest purchased the asset in 2010 for $28.5 million.

The five-storey, 6200 sqm building – which is adjacent to Brisbane’s Exhibition and Convention Centre – was completed in 2004 by Abigroup and Leyshon Developments at a cost of $22 million.

The building has a 5 star NABERS Energy rating, and current tenants include Stockland, Westfarmers and Belgian mining company Sibelco Group.

Primewest is said to be selling a $2 million portfolio of eight buildings. A share in a building at St Leonards in Sydney has also sold, while assets at 108 Wickham Street in Brisbane’s Fortitude Valley and 1 Breakfast Creek Road in Newstead are close to being finalised.