Jacob Fong has taken a deep dive into the Brisbane office market and uncovered good buying opportunities in the city’s Midtown precinct.
Already a subscriber?Former CBRE research analyst Jacob Fong has joined the growing number of private investors making counter-cyclical investments in the struggling office market after paying $48 million for a partially vacant tower in the Brisbane CBD.In March, when Mr Fong and his wife exchanged contracts to acquire the 12-storey building at 119 Charlotte Street from the Uniting Church , more than a third of the B-Grade property was empty.
This compares with an overall CBD vacancy rate of 9.5 per cent and vacancy rates of 12 per cent in the city’s legal precinct at the north-western end and 9.5 per cent in the financial precinct between Eagle Street and the Brisbane River.Taking advantage of his research background, Mr Fong said he had taken “extremely deep dives” into the Brisbane market to identify the best buying opportunities.
The Fongs’ acquisition of 119 Charlotte Street follows a wave of private investors and unlisted real estate funds snapping up office buildings from ASX-listed real estate investment trusts such as Charter Hall, Centuria and Abacus. Since acquiring 119 Charlotte Street, the Fongs, through their private company, Samford Commercial, have leased the two vacant floors in the building to a national education tenant at $780 per sq m, whilst locking in ASX-listed NextEd which occupies level nine, on a new five-year lease.
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