![The Post Office Square retail arcade in Brisbane.](/content/dam/images/g/t/u/l/f/y/image.related.afrArticleLead.620x350.gts94q.png/1484900149794.jpg)
Global investment manager LaSalle Investment Management is betting on a bounce in Brisbane, purchasing one of the best known retail arcades, Post Office Square, for about $95 million.
The asset was bought from a syndicate of investors led by Marquette Properties and included Ashe Morgan and Bricktop, which together bought the property in 2014 for $67 million and engineered a repositioning of the retail centre.
The strength of pricing on the deal negotiated by JLL's Simon Rooney shows the continued demand from big institutional money for retail centres doing well in prime city locations.
The subterranean centre between Queen Street and Adelaide Street has a net lettable area of 1756 square metres along with 29 specialty tenants, six ATMs and a 316-bay car park.
![The Post Office Square centre has undergone a refurbishment and functional and cosmetic improvements.](/content/dam/images/g/t/u/l/f/q/image.imgtype.afrArticleInline.620x0.png/1484797813380.jpg)
It changed hands in 2005 when the former CFS Retail Property bought it for just over $70 million. Marquette Properties has since completed an active refurbishment with functional and cosmetic improvements across the centre, which has as its neighbours Westpac and HSBC's Queensland headquarters.
Marquette managing director Toby Lewis and La Salle Investment Management regional director Mike Stratton declined to comment on the deal.
Strong market
JLL's Mr Rooney was unavailable for comment. This is the largest retail centre to trade hands this year and is due to settle next month. South-east Queensland's retail asset market has remained strong, with transaction volume for the third quarter at $241.9 million across 15 deals.
LaSalle's interest in Brisbane has also been growing. The group has drawn up plans to redevelop the Fortitude Valley railway station in Brisbane into a $500 million mixed-use development.
That plan, which is LaSalle's first apartment project in Brisbane, involves the construction of 207 apartments as well as a new commercial office tower on Constance Street, and refurbishment of the Transport House office building.
LaSalle Investment Management international director Ian Mackie said at the time that despite some concerns about an oversupply of apartments in Brisbane, he had confidence in the city.
"I am very confident in the location and timing," he said.