Property group Mirvac has completed the sale of a Brisbane office tower and adjoining car park for $124 million, marking a notable transaction amid ongoing uncertainty in the commercial real estate sector. The buyer, funds manager Alceon, acquired the Ann Street twin-tower office complex along with the Cathedral Square car park, underscoring strong investor interest in Queensland despite broader market headwinds.
The assets include 410 Ann Street, a B-grade office building comprising more than 20,000 square meters of space across two towers, with 139 car parking bays on a 4,052-square-meter freehold site. Adjacent to it is the Cathedral Square car park, offering 572 bays on an 8,949-square-meter leasehold that runs until April 2108. The fully leased office complex is reported to have a weighted average lease expiry of four years, with tenants ranging from the Public Trustee of Queensland to various parking and health service firms.
The sale price works out to roughly $6,000 per square meter for the office space, or under $4,000 per square meter once adjusted for the surplus parking capacity, and reflects a yield of approximately 11 percent. The deal was brokered by CBRE and JLL representatives and involved assets previously included in the Westpac Office Trust portfolio, managed by a Mirvac account.
Alceon’s Queensland general manager, Todd Pepper, described the acquisition as a targeted opportunity, noting the building had been under-managed and expressing a commitment to improving tenant engagement and occupancy amid tightening office supply. Alceon’s CEO David Gribble highlighted the firm’s confidence in Queensland’s property market, citing population growth and infrastructure developments such as the Cross River Rail and Brisbane Metro projects as factors supporting future demand.
This transaction stands out in a climate where rising interest rates have caused multiple syndicators in Brisbane, as well as in Sydney and Melbourne, to pull back from office investments. Analysts noted a slowdown in the sale of lower-quality office assets across these key cities, with more than $10 billion worth of office towers entering the market in the first half of 2026.
Mirvac’s sale precedes its scheduled operational update, expected to provide insight into the firm’s exposure to weakening housing market demand, a trend recently reported by rival developer Stockland. Meanwhile, Alceon now manages a Queensland property portfolio valued at over $1.25 billion, reflecting its ongoing expansion in the region.