CAMFIL HVAC Filtration Solutions
Asia PacificAustraliadesignNews

Savills IM to Acquire Brisbane Office Building for Pan-Asian Fund

Savills Investment Management (Savills IM), the international real estate investment manager, has agreed to acquire HQ South, an A-grade office building in Fortitude Valley, Brisbane from M&G, for its flagship pooled pan-Asian strategy fund.

The asset comprises a modern 14,588 sqm building in the thriving near-city Fortitude Valley precinct, with 1,503sqm in food and beverage tenants, a supermarket, GP clinic and other medical tenants to complement the upper level office component of 13,085sqm. This acquisition brings the total committed gross assets of the Savills IM pan-Asian strategy to approximately €400m, with 19 properties across Australia and Japan.

HQ South has a strong income profile, with anchor tenant CPB Contractors and 60% of income secured for 3 years. As an area popular with engineering and construction firms, it is set to benefit from the large amount of infrastructure investment planned and underway, including the Olympic Games in 2032. As a result of this and wider COVID-related trends, the southeast Queensland region is currently experiencing net positive migration boosting economic activity and the requirement for office accommodation.

The property has a 6-star Green Star design rating from the Green Building Council of Australia and NABERS energy and water ratings of 4.5 stars.

Greg Lapham, Head of Australia, Savills IM, comments: “We are pleased that we could add further diversification to our pan-Asian strategy. We are targeting to deliver resilient income and the potential for future growth through active asset management. HQ South has a strong income profile with the opportunity for us to benefit from growing demand in a potentially supply constrained sub-market, on the back of a significant increase in costs to develop”.

Advertisement

This purchase follows recent Japanese acquisitions, including a portfolio of 576 rentable units across Greater Tokyo and central Fukuoka and an office building in Yokohama, as well as Forest Lakes, a local neighbourhood shopping centre in Perth, Australia.

Focused on core-plus investments, Savills IM’s pan-Asian strategy was launched in December 2020 and has total equity commitments of approximately €260 million. The strategy focuses on markets in Asia Pacific and their key gateway cities to benefit from their stability, resilience and liquidity.

Savills IM manages AUM of circa €2 billion in the Asia-Pacific region with local offices in Singapore, Tokyo, Bangkok (as part of a cooperation agreement with Savills Thailand), Kuala Lumpur (as part of a cooperation agreement with Savills Malaysia), Seoul (via the strategic relationship with Samsung Life) and Sydney.

Author

  • Staff Reporter

    FMIndustry.com covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.

CAMFIL HVAC Filtration Solutions

Staff Reporter

FMIndustry.com covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.
Advertisement

We've noticed you are using an ad blocker

Advertising helps bring you fresh independent content. Please disable the adblock plugin or settings in your web browser to access the content you are trying to reach on www.fmindustry.com.