M&G Real Estate Asia (M&G), the real estate fund management arm of M&G Investments, has acquired a Grade A office building in Brisbane, Australia, for A$119.1 million (approximately US$90.9 million). The transaction was made on behalf of its core Asia property strategy.

Chiang Ling Ng, chief executive and chief investment officer of M&G Real Estate Asia, says, “This is the fifth acquisition our core Asia property strategy has made this year, further utilizing our capital queue in light of the continued investment appetite from regional and foreign capital.”

The acquisition, HQ South, comprises seven office floors, with one floor dedicated to retail and 207 parking lots. Adjacent to Fortitude Valley Railway Station – one stop away from Brisbane’s central business district, it is in close proximity to popular retail and entertainment amenities and good transport links. The building also has been awarded a 6-Star Green Rating from the Green Building Council of Australia for efficient energy usage and floor design.

“Supported by increased infrastructure spending and rapid development in the city, the Brisbane office market is among the best positioned across Asia-Pacific markets for a cyclical recovery, which offers relatively higher yield spreads to government bonds. Furthermore, the long-term prospects of commercial properties in Fortitude Valley are well supported by a growing population and increasing employment,” adds Ng.

Photo: realcommercial.com.au