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CITIMARK has divested Festival Towers for $22.7 million in one of the largest retail deals in the Brisbane CBD over the past two years.
Brisbane-based asset and investment management firm Marquette Properties snapped up the property on behalf of a trust with offshore private equity entities.
The sale is a premium for Citimark, after the Brisbane property group purchased the vacant ground lot from Devine for $7.8 million in 2004.
Located on the corner of Albert and Charlotte Streets, the retail precinct adjoins 34 levels of residential and hotel accommodation.
Citimark managing director Robert Pullar says the site's strategic location, size and anchor tenants were major drivers behind the sale.
"Brisbane CBD retail properties are tightly held and highly sought after investments, particularly a site like this in such a key growth precinct in Brisbane," Pullar says.
"This sale reflects the confidence and strength of the CBD with the property strategically located on Albert Street and near the future Queen's Wharf and Cross River Rail."
He says the key to realising value in retail assets was ensuring each site has the framework to meet a changing demographic, strong growth forecasts in pedestrian traffic and strategic tenancy mix.
Current tenants in the property include Priceline Pharmacy, Grill's, Hosaku (JHMY International), Spoon Deli Espresso, Nando's and San Churro.
Marquette Properties managing director Toby Lewis says this is the company's third deal in the last month.
"We have recently acquired three quality retail properties in St Lucia, Central Brisbane and Bushland Beach Plaza in Townsville and now Festival Towers," Lewis says.
"We liked this asset because it has been well leased and managed over a long period of time by Citimark, but also its growth potential with the thousands of new student housing beds, hotel rooms and apartments underway within 3 blocks of the asset."
The latest deal by Citimark follows the sale of two south-east Queensland retail centres to industry superannuation property fund ISPT, on behalf of its ISPT Retail Property Trust.
The company has a diversified retail and residential portfolio of $1.5 billion and is freeing up capital to pursue new opportunities.
MG Property Investments agent Mark Greer and Andrew Adnam of CBRE negotiated the deal.
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