Brisbane-based property fund manager Natgen has acquired a Herbert Street building for $9.28 million
The building currently houses five Queensland Government departments with a total 2,026 square metres, with a weighted average lease expiry of approximately six years.
A total of 95 per cent of income for the building comes from Queensland Government and Australian Government leases.
The trust fully subscribed under its unlisted property fund Natgen Investment Trust GL22 after attracting strong demand from property investors.
Natgen Managing Director Responsible Manager, Steven Goakes said the positioning of the building within dynamic region with renewable energy prospects, together with the predominantly government tenants, made it an attractive asset for a Natgen investment trust.
“The industrial strength of the region and large scale investment in renewables within the region place this asset well within the Natgen portfolio,” he said.
“The five-star NABERS energy efficiency rating of the building is central to the continuing attractiveness of the building for government tenants.
“Natgen has plans to improve the building over time to build upon its sustainability credentials.
“In fact, both state and federal governments have internal mandates requiring buildings which they occupy to hold high energy efficiency ratings. With the push to early carbon-neutrality, these requirements will grow in importance.”
Mr Goakes said the terms of lease will remain the same.
The latest property trust launched by Natgen adds to its previous funds which contain assets in Goodna, Toowoomba, Upper Coomera, Inverell and Gold Coast.
Natgen has executed a broad range of investment and development projects across a range of sectors, including commercial, retail, industrial and residential property.