EG Funds Management is paying $46.2 million for an office in Brisbane’s legal precinct.
The CBD asset at 95 North Quay (pictured, top) will be retained by the investment group’s High Income Sustainable Office Trust (HISOT).
Over 17 levels, the office, with 8417 square metres of lettable area, on the banks of the Brisbane River, was part of a two-property portfolio recently listed for sale by Peter Harburg.
“The acquisition provides the opportunity for EG to extend their ethical investment philosophy that underpins the HISOT fund,” EG’s associate director, Capital Transactions, Michael Noblet, said in this statement. “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.
“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.”
Developed in 1990, the building has a NABERS Rating of 2 stars, which EG expects to improve to more than 4.5-stars.
“This property will showcase how existing buildings can become better performers through upgrades that improve their energy efficiency, which extends their working lives,” Rory Lonergan, of the Clean Energy Finance Corporation, said.
Warren Bird, executive director of Uniting Financial Services, said in the statement: “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.”
Earlier this month it was reported EG Funds Management was seeking $150 million equity for a fund purposed to refurbish older properties into environmentally friendly ones.