Daiken Investment Australia, the local arm of Taiwan-listed health supplements group Daiken Biomedical, has bought the fully leased office building at 10 Browning Street, South Brisbane, for $81 million. The sale reflects an 8.4 per cent yield, and the seller is Forza Capital.
It is Daiken's second Queensland purchase this year. It also points to a growing theme in Brisbane: buyers are paying for income now and for development potential in a precinct set to be reshaped by the 2032 Olympics.
The deal at a glance
- Asset: 10 Browning Street, South Brisbane QLD
- Price: $81 million
- Yield: 8.4 per cent
- Building area: about 11,181 sqm of A-grade office plus ground-floor retail
- Site area: about 4,564 sqm
- Parking: 372 basement spaces
- Occupancy: 100 per cent, with a WALE of 4.8 years by income
- Net income: about $6.81 million a year
- Buyer: Daiken Investment Australia
- Seller: Forza Capital
- Agents: MP Commercial (Mike Walsh, Peter Court) for the seller; Colliers (Tony Wang, Sam Arkell, Marshall Smith) for the buyer
A practical, fully leased office building
10 Browning Street was completed in 2008. Its biggest leasing strength is its large floorplates of about 2,800 sqm each. That size suits tenants who want a whole team on one floor, and they are hard to find in Brisbane's fringe office markets.
The tenant line-up is varied, including Credit Corp, Thiess, Visionstream, Vienta and Snap Fitness. The Melbourne Hotel occupies a ground-floor retail tenancy. Parking is generous for an inner-city building, at 372 basement bays or about one space per 30 sqm, operated by Secure Parking.
The building does have a weakness. It has a 1-star NABERS Energy rating, well below what large corporate tenants increasingly demand. That partly explains the 8.4 per cent yield, and it gives the new owner an obvious value-add path through sustainability upgrades.
Zoning upside: up to 30 storeys
The site is zoned Principal Centre in the Kurilpa South area. According to the selling agents, that allows code-assessable development of up to 30 storeys, with nearby projects reaching 50. The agents also put the price at about 60 per cent below replacement cost.
That combination of solid income now and redevelopment potential later is what makes South Brisbane attractive. The precinct is expected to play a major role in the 2032 Olympic and Paralympic Games, with significant infrastructure, residential and commercial development planned.
Who is Daiken?
Daiken Investment Australia is the local subsidiary of Daiken Biomedical, a Taiwan-listed health supplements company. It is new to the Queensland market but moving quickly. About four months ago it paid around $62.2 million for Hope Island Central on the Gold Coast, where the state government is a key tenant, buying from Argus Property Partners.
Both purchases fit the same pattern: fully leased, income-producing assets in growth areas of south-east Queensland, bought at yields well above prime CBD levels. For offshore private capital, Queensland offers population growth, infrastructure spending and pricing that still looks good value next to Sydney and Melbourne.
Forza Capital's track record
Forza Capital has been selling Brisbane office assets this year. The fund manager is reported to have paid about $65.5 million for 10 Browning Street in 2016, buying from Armada Funds Management at a 7.9 per cent return. Selling at $81 million gives a solid capital gain over the decade, even though yields have softened.
In August, Forza also sold 200 Creek Street, Spring Hill, a 10-level, 7,600 sqm office, to Direct Commercial Property for about $55 million. It had bought that building from Sentinel for $41 million in late 2021.
How it compares
Set against other recent office deals, the 8.4 per cent yield shows how much the market now separates prime from everything else:
- 5 Martin Place, Sydney: a half stake sold this week at 5.75 per cent, a trophy CBD asset
- 133 Mary Street, Brisbane CBD: sold in September for $81.8 million to Quintessential Equity, about two-thirds occupied, bought as a value-add play
- 10 Browning Street, South Brisbane: 8.4 per cent, fully leased but with a low energy rating and a shorter WALE
Fringe Brisbane office with full occupancy is still delivering yields that attract private and offshore buyers. The added zoning upside makes the case stronger.
What it means for owners and developers
- Sustainability is a pricing lever. Low NABERS ratings widen yields, and upgrading them is a clear value-add strategy.
- Floorplate size still matters. Large, efficient floors keep fringe buildings competitive.
- Zoning is part of the value. Sites with height potential near Olympic precincts are being bought for the future, not just today's rent.
- Sell the vision. When value depends on future development, renders and precinct visuals help buyers understand what the site could become.
What to watch next
Watch whether Daiken keeps buying in south-east Queensland, and whether it upgrades the building or holds the site for redevelopment closer to 2032. Watch whether other offshore private buyers follow into Brisbane fringe office. And watch for more Kurilpa and South Brisbane sites coming to market as Olympic planning firms up.