This article is from the Australian Property Journal archive
ABACUS Property Group and global real estate investment firm Heitman LLC have teamed up again, to secure 1 King St in Brisbane’s Fortitude Valley for $170 million from the Liberman-backed Impact Investment Group.
The partners will each own a 50% interest in the city fringe commercial building. Known as K1, located at 1 King St in Fortitude Valley, the nine-storey 16,000 sqm office is the first of three towers within the Brisbane Showgrounds precinct. It is anchored by Robert Bird Group and Lendlease.
The property last changed hands in 2015 when Lendlease sold it IIG for $130 million. IIG is backed Small Giants, a company run by Danny Almagor and Berry Liberman.
Abacus managing director Steven Sewell said, “We are excited to once again work with Heitman in the Australian real estate market following a successful first venture. This further highlights Abacus’ credentials as a partner of choice for local and global real estate investment managers. This high quality asset will improve our portfolio and is expected to be earnings accretive for the remainder of FY19,”
Sewell said the property highlights the Abacus’ city fringe strategy, where it sees market change and fundamental value opportunities, supported by improving infrastructure, transport and access to amenities and lifestyle choices.
“The property is expected to generate strong and stable real cash returns with limited capital expenditure or vacancy expected over the medium term. We also anticipate significant regeneration of the Fortitude Valley area, which is currently undergoing large scale development that should enhance the location in the future,” he added.
Heitman LLC managing director of Asia-Pacific private real Estate equity Skip Schwartz said the property is well-positioned to benefit from growing demand.
“We view our investment in K1, a grade-A asset that is well-situated in the Brisbane market with a strong tenant profile, as compelling and well-positioned to benefit in the future from the growing demand for high-quality, environmentally sensitive office space. We are pleased that we are able to execute this transaction alongside of Abacus and look forward to our continued success in our Australian collaborations.” Schwartz said.
Australian Property Journal
