'K1', 1 Kings Gate, Fortitude Valley, Brisbane
Asset Type: Commercial Property.
Return: Commercial lease and potential for capital appreciation at Trust end in four to five years. Forecast to deliver a majority tax deferred, average cash yield to investors of 10% per annum and an IRR in excess of 12% at Trust end. Lend Lease is the anchor tenant and will occupy three of nine floors as K1’s anchor tenant on a 12 year lease. The weighted average lease expiry (WALE) on acquisition is 8.8 years, which is calculated on the basis of executed leases and Heads of Agreements with prospective tenants.
Environmental intention: K1 is located in the Brisbane Showgrounds urban regeneration precinct. It is one of the most environmentally sustainable commercial buildings in Australia. K1 is a Green Star 6 Star certified building designed and built by Lend Lease, K1’s anchor tenant. K1 is expected to achieve NABERS 5 stars at commissioning. IIG is committed to implementing industry-leading energy and water performance monitoring at K1.
Social intention: IIG plans to develop the IIG Catalytic Capital Fund seeded by up to $500,000 of the Trustee’s management fees. The purpose of the Fund is to provide a combination of first-loss/patient capital and other funding support to catalyse mainstream investment in higher-risk social impact projects by lowering the risk profile of high impact opportunities.