Townsville Office Building Sold for 6.9% yield22 April 2020
Castlerock has acquired Far North Queensland’s primary State Government headquarters and critical emergency recovery centre in a $92.8 million transaction – the largest acquisition by the group to date.
The property at 445 Flinders Street is the premium office building in the regional city and home to a variety of State Government departments who occupy approximately 90% of the building.
The 11,383 square metre Verde Tower stands 12 levels high and comprises a mixture of ground floor retail, parking and office accommodation on a 2,500sqm site.
The property was developed in 2013 by Brisbane-based Verde Property, founded by the Gosling and Goldburg families and held ever since by an associated company, Friday Investments. Built specifically for the Queensland Government’s North Queensland Recovery Centre, the building is able to operate without power or water for up to five days. Further more, the building holds a 5 Star Green Star Rating with NABERS ratings of either 4.5 and 5 for all categories.
Castlerock Managing Director Hank Bronts said: “This is an extremely important acquisition purchased as part of our strategy to focus and target high quality assets backed by strong government covenants.
The property was purchased within the Auslink Property Trust No.2, which now comprises nine buildings worth $243 million.
In a demonstration of positive demand, the property was settled two months early due to increased investor interest.
The property was sold by Colliers Townsville.
The acquisition is the largest office deal in Townsville. Other major acquisitions in Townsville in recent years include include Cromwell, who acquired 420 Flinders Street for $63m in late 2018 (7.3% yield) and Sentinel Property Group who acquired 3 Tomlins Street and 370 Flinders Street for $28.6M and $15.5M in 2017/18.