ASX-listed Abacus Property Group has entered into a second joint venture partnership with global real estate management firm Heitman, acquiring an office tower in Brisbane’s Fortitude Valley for about $170 million.
The two joint venture partners acquired a half stake each in the K1 tower, which was offloaded by the Melbourne syndicator Impact Investment Group, as part of its focus on city fringe markets.
Impact bought the 1 King Street tower in 2015 for about $130 million.
Heitman first established its Australian operations in 2011 with Abacus – investing in a range of assets including core-plus office, industrial and retail properties. The firm is headquartered in Chicago with around US$42 billion in assets under management.
The Lendlease-developed 1 King Street tower offers 16,600sq m of office space, a high WALE of six-plus years and is home to Lendlease’s Queensland headquarters, payments company Ezidebit and telecom company Vita Group.
K1 has a NABERS energy rating of 6 stars.
Abacus managing director Steven Sewell said that the group anticipates significant regeneration in Fortitude Valley.
“The property highlights the Group’s city fringe strategy where we see market change and fundamental value opportunities, especially where they are supported by improving infrastructure, transport and access to amenities and lifestyle choices.”
In a statement, Steven Sewell joined Heitman Asia Pacific private real estate equity managing director Skip Schwartz in welcoming the return to the joint venture partnership.
“We are excited to once again work with Heitman in the Australian real estate market following a successful first venture,” Sewell said.