Castlerock purchases Ipswich’s Icon building

Castlerock paid $57m for Wollongong’s ATO building last September.

Cromwell Property Group has sold Ipswich’s Icon building for $145.2 million.

The seven year old property, 117 Brisbane Street, was held in the Cromwell City Heart Trust, which is being wound up.

Icon is costing Castlerock $145.2m.

It was last valued by the manager six months ago at $128.5m.

The office is being acquired by Castlerock which also intends to place it in a fund – the Auslink Property Trust No 2, which is now worth nearly $500m.

“The acquisition reflects another significant step forward for Castlerock, adding to our successful acquisition in September, 2020, of the $57 million Wollongong ATO building,” director Adam Bronts said.

“We believe this acquisition is an exceptional opportunity for both our existing and new unitholders, with the Ipswich property meeting all the fund’s specific criteria,” he added.

Colliers’ Sam Biggins and Simon Beirne brokered the sale; it is the third asset the agency has sold Castlerock since 2019.

Ipswich is about 35 kilometres south west of Brisbane.

Icon building

Icon is the 18-year old Castlerock’s priciest acquisition.

Over nine storeys, it contains 17,080 square metres of office space, 91 per cent of which is rented to the state government on a lease expiring in 2028.

It additionally includes 790 sqm of retail (story continues below).

The building replaced a low rise shopping complex, Ipswich City Square.

“Acquisitions of this quality demonstrate we are continuing our strategy of buying high-quality assets tenanted by governments and located in areas that are being revitalised by state and private investment,” according to Mr Bronts.

“The acquisition also builds on the strong relationship we have with the Queensland government, where they have been excellent tenants in our buildings located in Townsville and Mackay,” he said.

“By managing this building inhouse, we will ensure our relationship…remains rock solid”.

Auslink Property Trust No 2

To fund the purchase, Castlerock will launch a $90m capital raising exercise on July 1.

“On the investment front, this acquisition both grows and diversifies the assets in the Auslink Property Trust No 2, as well as providing a stable income stream for our investors – a priority criterion for any investment,’ Mr Bronts added.

“The fund is estimated to yield an investment return of 7.2pc over the next 12 months, with a historic Internal Rate of Return performance to date of the trust of 12.5pc, per annum”.

Cromwell acquired the property when it was under construction as Stage 1 of the regeneration of the Ipswich CBD, Mr Beirne said.

“When coupled with the soon-to-open Tulmur Place development, it illustrates how the commercial centre of Ipswich is rapidly evolving,” Mr Biggin added.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of