IIG K5 Property Trust
Asset type: Commercial Real Estate
The IIG K5 Property Trust is an investment vehicle to own 25 King, a ten-level office tower showcasing best-in-class environmental sustainability. The property will have more than 14,000m2 of A-grade office accommodation over nine levels, and almost 500m2 of retail space on the ground floor.
The Trust will fund the property through development, and own the property at practical completion, which is due in late 2018. The purchase price reflects a valuation around $140 million and a net passing yield of 6.5%.
IIG has partnered with global property developer Lendlease Group to develop, lease and manage the property.
IIG expects that 25 King’s design, construction and operation will put the property at the forefront of modern green buildings in Australia. IIG and Lendlease are targeting a 6 Green Star Design & As Built rating, the highest available accreditation from the Green Building Council of Australia, and a 5 Star NABERS Energy rating. The environmental performance is designed to come from 25 King’s use of new, sustainably sourced, engineered timber classes; Cross Laminated Timber (CLT) and Glue Laminated Timber (Glulam), as well as energy efficient LED lighting, occupancy sensors, optimised air-conditioning and rooftop rainwater harvesting.
25 King will be the tallest engineered timber building in Australia: Glulam for the structural beams and columns, and CLT for all the other major elements, including floors, lift-shafts and stairs. This modern version of timber construction comes from extensive research and development efforts across Australian and European industry and academia. Engineered timber buildings produce around half as much CO2 during construction compared to equivalent concrete and steel structures. They also produce less CO2 during ongoing operation.
Lendlease has provided 5-year rental guarantees for the remaining office floors and the ground floor retail spaces. Lendlease will also retain responsibility for leasing the vacant space during the construction phase, with all new leases subject to a number of contracted minimum terms.
25 King was designed by leading Australian architectural firm Bates Smart, an award-winning company with studios in Melbourne and Sydney.
25 King is one of the final projects to be delivered in the $2.9 billion renewal of the Brisbane Showgrounds precinct in Fortitude Valley, 1.5 kilometres from the Brisbane CBD.
The Showgrounds renewal started in 2011 and extends over 22 hectares of brownfield land. It is one of the largest urban renewal initiatives in Australia, including 340,000m2 of new residential, commercial and retail buildings. Brisbane Showgrounds owner, RNA, expects to attract 1 million visitors annually to the precinct.
Environmental intention: 6 Green Star Design & As Built rating from the Green Building Council of Australia. Through the use of engineered timber, a reduced CO2 production during the construction phase, in comparison to concrete and steel-based structure.
The Australian: Lendlease Commits To Timber Tower In Brisbane
The Courier Mail: World’s tallest timber office building launched at the RNA Showgrounds and it will open its doors late 2018
The Guardian: Tall Timber: The World's Tallest Office Building to Open in Brisbane
The Australian Financial Review: World’s Tallest Timber Office Tower for Brisbane
The Australian: Nations Tallest Timber Building Planned for Showgrounds Site (Paywall)
Sydney Morning Herald & Brisbane Times: Tallest timber office to call Brisbane home
The Fifth Estate: Brisbane to become home to Australia’s tallest timber tower