Union Investment Real Estate Sells Brisbane's Southpoint Commercial to LDR Capital Management Above Valuation
Union Investment Real Estate GmbH has sold Southpoint Commercial, a fully leased mixed-use office and retail building in Brisbane's South Bank precinct, to LDR Capital, the real estate investment arm of the Lederer Group, one of Australia's largest family offices. The transaction closed at approximately A$255 million, a price above the most recently determined expert valuation, per the announcement dated September 3, 2026.
Union Investment originally acquired the property in 2014 as a forward-funded development for its open-ended real estate fund UniImmo: Europa, completing the asset in 2016. The sale marks the end of a roughly 12-year hold period and represents the firm's exit from the Brisbane market while retaining three Asia-Pacific assets — in Sydney, Tokyo, and Seoul — valued at a combined €246.2 million.
Property Details: Southpoint Commercial at 271–275 Grey Street
Southpoint Commercial is located at 271–275 Grey Street, South Brisbane QLD 4101, on the southern bank of the Brisbane River. The building offers a total net lettable area of 28,068 square meters, comprising 23,702 square meters of office space and 4,366 square meters of retail space. The asset is 100% leased and serves as the global headquarters of two ASX 200 companies: Flight Centre Travel Group and Virgin Australia.
Flight Centre recently committed to a new 10-year lease commencing October 2026, reinforcing the building's long-term income profile at the time of sale. The transaction implies a price of approximately A$9,100 per square meter on the total net lettable area, with an initial yield of approximately 7.8% on a gross basis. LDR Capital is holding the asset through a new wholesale vehicle, the LDR Grey Street Fund.
Seller Commentary: Portfolio Strategy and Market Timing
"This transaction reflects the continued depth of investor demand for best-in-class office assets in Brisbane, amid improving office fundamentals. Southpoint Commercial has performed strongly for our fund, and we're proud of the value we've created via the successful implementation of planned asset management initiatives. We wish the new owner continued success," said Christopher Tay, Director and Head of APAC Transactions at Union Investment.
"The sale of Southpoint is consistent with our disciplined approach to portfolio management — capitalising on the asset's improved performance at a point where market conditions support strong pricing for high quality, well-located stock, delivering optimal returns for our investors. The Asia-Pacific region remains a long-term strategic investment focus for our funds," said Eric Cheah, Head of Investment Management Asia-Pacific at Union Investment.
Karim Esch, Head of Real Estate Management and a member of the management board of Union Investment Real Estate GmbH, noted that the property had delivered attractive performance over the approximately 12-year hold period and that the firm had taken advantage of improving fundamentals in Brisbane's office market to execute a profitable, portfolio-strategic sale.
Brisbane Office Market Context
The transaction comes as Brisbane's office market has shown measurable improvement. Net absorption in the Brisbane CBD reached 38,800 square meters in the first half of 2026, while overall vacancy fell to 10.2% and prime CBD yields tightened to 6.83% in the second quarter of 2026. Prime gross effective rents reached A$574 per square meter per year, up 9.8% year on year, reflecting firming demand for quality space.
In the South Brisbane fringe submarket, where Southpoint Commercial is situated, net effective rents stood at A$279 per square meter per year, up 3.1% year on year, with fringe vacancy at 11.4%. The improving fundamentals across both the CBD and fringe markets provided a supportive pricing environment for institutional-grade assets with strong tenancy profiles at the time of the sale.
Advisory and Remaining Asia-Pacific Portfolio
BNP Paribas Asset Management advised Union Investment Real Estate on the sale. Following the Brisbane disposition, Union Investment Real Estate GmbH retains three properties in the Asia-Pacific region — in Sydney, Tokyo, and Seoul — with a combined value of €246.2 million across its funds. The firm characterized the Asia-Pacific region as a continuing long-term strategic investment focus despite the exit from Brisbane.
Sources
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