Melbourne-based syndicator Impact Investment Group is looking to offload its K1 office tower in Brisbane's Fortitude Valley for about $170 million.
The Australian reports that US property investment giant Heitman is the likely buyer in an expected off-market deal.
The Liberman family-backed Impact Investment Group bought the asset at 1 King Street in 2015 for around $130 million.
The nine-level, A-grade, 16,600sq m office building, which is part of the broader $3 billion Brisbane Showgrounds urban regeneration precinct, was developed by Lendlease and completed in 2015. K1 is the first of three towers at Lendlease's Kings Gate commercial precinct at the RNA redevelopment.
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The building is home to Lendlease's Queensland headquarters and the company has committed to a long-term lease. Other tenants include education company Pragmatic Training, payments company Ezidebit, telecom company Vita Group and Robert Bird.
Impact Investment, controlled by Chris Lock and "Small Giants" – the family office of Daniel Almagor and Berry Liberman – holds the building in the IIG K1 Property Trust. K1 has a NABERS energy rating of 6 stars.
Heitman is a global real estate investment firm headquartered in Chicago with around US$40 billion in assets under management. The firm was active in Australia at the end of 2017 seeking to raise $500 million for a private debt fund to finance US property deals.
Heitman established operations in Australia in 2011 through a $600 million joint venture with the ASX-listed Abacus Property Group and invested in a range of assets including offices, retail and industrial properties.
Impact Investment and Lendlease struck a deal for what was called Australia’s tallest timber building at 45-metres being built in the Brisbane Showgrounds precinct. 25 King is due for completion in late 2018.
Impact Investment Group and developers Frasers Property Australia and Sekisui House last week announced a major tenancy deal with the University of Technology Sydney at their landmark Central Park project - a multi-stage $2 billion “urban village” spanning more than five hectares and including public spaces, apartments, student accommodation, a hotel and retail and commercial space.