Funds manager Castlerock is moving ahead with its carbon-neutral A-grade office building in North Queensland.
Work on the former carpark in the Townsville CBD has begun to make way for the five-storey block.
The Services Australia building at 158 Walker Street will be Castlerock’s first carbon-neutral building and is expected to be completed by mid-2026.
It includes a 99kW solar array, energy-efficient cooling and lighting systems, all monitored from Castlerock’s Melbourne office, according to the developer.
The 6500sq m A-grade office space will have rainwater harvesting capabilities, as well as 46 bike racks and 107 carparking bays, and 200sq m of retail on the ground floor.
Castlerock is seeking an operator for the asset.
It is not Castlerock’s first foray into Townsville—it developed an office block at 445 Flinders Street for the Queensland government.
The fund has a forecast distribution rate of 7.85 per cent and comprises $525 million across 13 buildings, with 96 per cent leased by either state or Commonwealth governments.
Townsville has seen considerable uplift in recent years and, according to a Colliers report, the city has experienced a “strong take-up of large CBD office leases from national firms”.
Despite an absence of “significant properties coming on to the market” there is a strong project pipeline.
Interest in Townsville residential has also been heating up, with $65-million waterfront residences in the works by developer Glen Maidment, a $550-million tourism and residential project lodged this month that will include a water park, and Geon’s latest plans for what will be North Queensland’s first build-to-rent project.
