Paul Lederer Pays $255m for Brisbane’s Southpoint Tower
Billionaire Paul Lederer’s family office, LDR Capital, will splash $255 million on Southpoint office tower in Brisbane.
LDR Capital is acquiring the tower from Hamburg-based Union Investment Real Estate and plans to use the asset to anchor a new wholesale property fund.
The 27,765sq m, A-grade building at 275 Grey Street, South Brisbane, carries a 7.8 per cent initial yield on a gross basis, with a net price of $214.8 million following transaction adjustments.
Lederer would retain a 25 per cent stake in the fund.
Completed in 2016, the 21-level tower serves as the global headquarters of Flight Centre, which pre-committed to the building when Union Investment acquired it from Brisbane developer Anthony John Group for $200.6 million in a forward-funding deal in 2014.
Virgin Australia also occupies space in the building where leases run for an average of 8.4 years.
Southpoint sits above South Bank railway station, making it Brisbane’s only prime-grade office with direct rail integration.
The precinct has an average 2.8 per cent vacancy rate and has recorded more than 35 per cent net effective rent growth.
The fund intends to exit before the 2032 Brisbane Olympics.
It is Lederer’s second major office purchase in under a year. Mirvac sold the Sirius complex in Canberra to LDR Capital for $305 million in December.
Lederer, the former Primo Smallgoods chief executive and Western Sydney Wanderers co-owner, also took control of the Elanor Commercial Property Fund last year, which has since been rebranded under his group.
Meanwhile, Stockland has filed plans for a $640-million mixed-use precinct at the former Melbourne home of budget carrier Jetstar.
The proposed development would comprise 478 apartments across two buildings of up to 23 storeys, plus retail activated around two central plazas at 79–81 Victoria Parade, Collingwood.
