Forza Capital has purchased a grade-B office building in the Brisbane CBD from Sentinel Property Group for $41 million, with plans to upgrade the property’s environmental performance.
The 200 Creek Street asset has 7,603 sqm of net lettable area and 88 car bays on a 6,211 sqm site, according to Sentinel.
The 10-storey building will undergo a major sustainability upgrade to achieve a 5.5-star National Australian Built Environment Rating System (NABERS) rating.
The Clean Energy Finance Corporation (CEFC) is providing a $30 million senior secured debt facility to finance the energy performance improvements.
“For over 10 years we have been diligently working in the background improving the sustainability of the commercial property assets we own,” said Forza Capital Director Adam Murchie.
“The transition of mid-tier buildings to a lower carbon future is not particularly difficult or costly.
“More importantly, in our experience once such assets are transitioned we find they actually create additional financial returns through cost savings and valuation improvement.”
CEFC CEO Ian Learmonth said that the project was a market-leading opportunity to show what standards could be achieved across the sector.
“Refurbishing existing commercial buildings will have a powerful impact on the emissions and livability of our cities,” he said.
“It will transform them into energy efficient performers that support Australia’s transition to low emissions, while retaining their competitive edge.”
Cushman & Wakefield’s Peter Court and Mike Walsh represented Sentinel Property Group in the sale.
Sentinal bought the 200 Creek Street property from Centuria for $38 million about five years ago.
The seller has invested $2.7 million on upgrades to building services, tenant fitouts and foyer refurbishments.
The transaction comes after Cromwell Property Group bought the nearby 24-storey office building at 100 Creek Street in Brisbane’s CBD from ISPT for $184.7 million last month.
Other recent office deals around the country include LaSalle Investment Management’s acquisition of a grade-B office in North Sydney for $152.4 million and Stadia Capital’s purchase of a Harry Seidler-designed office building in North Sydney for more than $80 million.
Last week, Dexus sold a Sydney CBD office to Charter Hall’s prime office fund for $385 million, while Singapore-listed CapitaLand Integrated Commercial Trust purchased two grade-A office buildings in Sydney for $330.7 million.
The Australian Unity Office Fund agreed to sell a grade-B office in Parramatta for $66 million, as Singapore-listed Keppel REIT purchased a grade-A office development in North Sydney for $327.7 million.
GIC and Charter Hall recently formed a joint venture to buy the 50 Marcus Clarke office building in Canberra’s CBD for $335 million, and ISPT bought the headquarters of Victoria’s Country Fire Authority in Melbourne’s eastern suburbs for $35.8 million.