Cannon Hill is going off

Amid early signs of an upswing in the office market, fund manager Natgen has entered into an agreement to buy a modern, fully leased office building within one of Brisbane’s most tightly held suburban precincts.

Natgen Investment Trust SG25 will pay $22m for the property at 38 Southgate Ave, Cannon Hill, in a deal managing director, Steven Goakes said aligned with the Fund’s strategy of investing in quality commercial properties with resilient income and capital growth potential.

The Trust has garnered strong interest as it raises $14.5m from investors and is targeting monthly distributions of 8.3 per cent a year over a five-to-six-year term. “This acquisition reflects our view that the fundamentals are turning for the office sector,” Mr Goakes said. “High-quality assets in infill, well-connected locations like this are increasingly difficult to replicate – yet tenant demand is returning and leasing conditions are improving. As a location, Brisbane presents a compelling investment case.”

The deal was struck by Sam Arkell from Colliers. According to Cotality the property in Cannon Hill’s Southgate Corporate Park last changed hands in 2017 for$22.65m when it was bought by Trilogy Funds. The building has 3489 sqm of net lettable area over three levels.

Mr Goakes said Brisbane was entering a once-in-a-generation growth phase, fuelled by more than $107bn in committed infrastructure spending in the lead-up to the 2032 Olympic Games.

The acquisition continues Natgen’s expansion, with the company recently investing in a range of assets, including the $9.65m purchase of a day hospital in Southport, a $10m office/warehouse development in Yarrabilba, and an $11.7m rural residential subdivision in Yatala.