Deka Immobilien Sells Brisbane's 66 Eagle Street to GPT for A$380 Million
Deka Immobilien GmbH has sold the 66 Eagle Street office tower in Brisbane, Queensland, to Australian real estate investment manager GPT for approximately A$380 million, equivalent to around €235 million. The net sale price incorporates future incentives payable to existing tenants. The property was held within the Deka-ImmobilienGlobal open-ended real estate fund, with Deka Immobilien Investment GmbH also named as a seller-side party to the transaction.
Property Overview: 66 Eagle Street in Brisbane's Golden Triangle
Known locally as Central Plaza 2, 66 Eagle Street is a 23-level, A-grade office tower situated in Brisbane's Golden Triangle — the financial and commercial heart of the city's Central Business District. The building was constructed in 1990 and underwent a comprehensive refurbishment in 2020. Deka Immobilien acquired the property directly following that refurbishment.
The tower provides approximately 32,000 square metres of net lettable area — roughly 344,000 square feet — along with 211 car parking spaces. At the time of the transaction, the building was approximately 95.5% leased to around 25 tenants, predominantly from the financial, professional services and government sectors. The weighted-average lease expiry stood at approximately 3.8 years.
Queensland Investment Corporation, the Queensland government-owned institutional investment manager and sovereign wealth fund, serves as the anchor tenant. QIC is expected to vacate its occupied space in the future, a factor that informed Deka's decision to sell at this point in the market cycle.
Deal Structure and Pricing
The A$380 million consideration reflects an implied price of approximately A$11,875 per square metre based on the approximately 32,000-square-metre lettable area cited in Deka's announcement. GPT is acquiring the asset through its value-add partnership backed by TPG Angelo Gordon. Settlement is expected in November, subject to Foreign Investment Review Board approval.
The transaction price incorporates future tenant incentive costs, meaning the net proceeds to Deka account for anticipated leasing costs associated with the building's near-term lease expiries, including the expected departure of QIC.
Deka's Rationale: Market Timing and Risk Reduction
Deka Immobilien stated that the fund management of Deka-ImmobilienGlobal is using the improved market environment for office properties in Australia to crystallize value while simultaneously reducing re-leasing risk ahead of QIC's planned departure. The fund intends to redeploy the sale proceeds by targeting different real estate cycles across global markets.
The sale reflects a broader dynamic in Australia's office sector, where demand has strengthened for well-located, recently refurbished CBD assets even as the market remains bifurcated between high-quality and lower-quality stock. Brisbane's Golden Triangle location and the building's 2020 refurbishment position 66 Eagle Street among the more competitive assets in the market, though the 3.8-year WALE and the anticipated QIC vacancy introduce meaningful re-leasing considerations over the medium term.
GPT's Acquisition Strategy
For GPT, the acquisition provides exposure to a recently refurbished, institutional-grade Brisbane office tower at a price described as significantly below replacement cost. The value-add mandate under which GPT is acquiring the asset is consistent with a strategy of repositioning well-located buildings, re-leasing vacant space and capturing potential rental growth as Brisbane's office demand continues to evolve.
With approximately 4.5% vacancy at acquisition and a major tenant departure ahead, GPT assumes the execution risk of re-leasing the space — risk that Deka's open-ended retail fund has effectively transferred through the sale. The transaction allows Deka-ImmobilienGlobal to redeploy capital into markets or property sectors at more favorable points in the global real estate cycle.