(Sydney, Australia) EG, one of Australia’s leading real estate fund managers, has complemented the assets in the High Income Sustainable Office Trust (HISOT) with the addition of 95 North Quay, Brisbane.
Located in Brisbane’s CBD legal precinct, the 17-storey building is located on the banks of the Brisbane River. The $46.2 million acquisition has a net lettable area of 8,417sqm and holds a current NABERS Rating of 2.0 stars.
The acquisition provides the opportunity for EG to extend their ethical investment philosophy that underpins the HISOT fund and seeks to improve the energy efficiency of assets, with a target of greater than 4.5-star NABERS.
“We believe the asset is well positioned to take advantage of the improving Brisbane office market and the substantial level of infrastructure investment in the Brisbane CBD,” said EG Associate Director, Capital Transactions, Michael Noblet.
“The asset will be repositioned to meet current tenant demands while taking advantage of cost effective capital works and operational improvements to reduce carbon emissions”.
The building was constructed in 1990 and EG plans to carry out the necessary capex works to the mechanical plant and address building energy inefficiencies.
This property will diversify HISOT’s portfolio, as well as demonstrate the inherent value in revitalising older building stock to higher energy efficiency standards.
Rory Lonergan, Investment Funds Lead from a HISOT cornerstone investor, the Clean Energy Finance Corporation, commented: “This property, will showcase how existing buildings can become better performers through upgrades that improve their energy efficiency, which extends their working lives.
Warren Bird, Executive Director of Uniting Financial Services, welcomed the acquisition. “North Quay is attractive because of its prospective strong financial return while reducing the carbon footprint of Australia’s commercial building scene. This is a great strategy to be involved with.”
The HISOT fund is currently targeting an additional $150 million of equity investment to augment the fund to an anticipated seven to 10 assets.