Cairns office building fetches $8.5 million
August 23, 2017
Sentinel Property Group has bought a city-fringe Cairns office building for $8.5 million in a high-profile off-market transaction.
The company now owns the four-level complex at 139 Grafton St, marking its first local investment since taking over DFO Cairns Shopping Centre last year. “Cairns is a market that we know very well and has been a major focus for us in successfully turning around the DFO Cairns centre over the past year through continual improvements and investment,” Sentinel managing director Warren Ebert said.
“We see a lot of upside in the Cairns market on the back of its resurgent tourism sector and … development projects that will drive further tourism and economic growth.”
The Grafton St property is fully leased by two tenants: Queensland Health, which has recently signed a new five-year lease, and a “well-established” medical practice.
Mr Ebert said the complex would be a “high-quality” addition to the Sentinel Regional Office Trust.
“We have a number of further regional office acquisitions in the pipeline,” he said.
Apart from DFO Cairns, Sentinel also owns the home of Big W at Atherton.
The sale of the Grafton St property was brokered by Danny Betros of CBRE Cairns, who described the transaction as a “good result for Cairns”.
“The investment market is very active. There is good demand,” he said.
“In my view this was a good buy all-round, the Melbourne-based vendors wanted out.”
Based in Brisbane, Sentinel Property Group has a national property portfolio worth in excess of $1 billion.
The Cairns Post reported earlier this month that DFO Cairns had turned over a new leaf since being bought by Sentinel for $40 million in March 2016.