ISPT’s Green Square South Tower in Brisbane’s Fortitude Valley is on the market, with the building expected to sell around $200 million. The 18,000sqm A Grade tower is located at 505 St Pauls Terrace and is fully leased to the Brisbane City Council until 2027.
ISPT bought into the development in 2005 and forward funded, as part of a four property deal with Leighton Properties which included the neighbouring building Green Square North Tower and two buildings at Civic in Canberra.
ISPT has appointed Colliers International agents Tom Barr, Don Mackenzie and John Marasco to sell the asset. Mr Barr said the move to sell Green Square South Tower, which is part of ISPT’s Core Fund managed by Mark Bassett, at this point makes sense.
“At the time they acquired this asset ISPT were underweight in Brisbane, with only one asset at 100 Creek Street, and were locked out of the market due to lack of suitable stock being traded.
“ISPT remain committed to Brisbane having acquired a 50 per cent interest in 1 William Street in December 2013; are currently conducting a significant refurbishment of Central Plaza One; and have significant retail interests in the recently redeveloped Wintergarden and Broadway on the Mall.”
According to Mr Barr ISPT has been inundated with unsolicited interest in the asset over the past 6 months. “Green Square South Tower is sure to attract plenty of attention from both domestic and offshore capital chasing yield, which have been starved for new generation ‘annuity-style’ assets with long WALE and government credit tenant covenant.”
Tony McCormack, Head of Capital Transactions at ISPT, said “Fundamentally Green Square South Tower is being sold to recycle the capital.”