One of Australia’s leading real estate fund managers has acquired a second asset for its High Income Sustainable Office Trust (HISOT).
The commercial asset, purchased by EG, is less than a kilometre from Parliament House, on a prominent corner site in Barton, ACT.
The 4054 sqm building has a current NABERS rating of 3.0 with a vacancy rate of 38 per cent.
The Australian Medical Association will be remaining on-site as the primary tenant.
“EG will deliver a repositioned, sustainable building in the heart of Canberra’s most attractive office markets,” Associate Director, Capital Transactions, Michael Noblet, said.
“We are targeting to improve the NABERS rating to 4.5 stars or higher through operational improvements and an active capital works program.”
EG has already planned to align themselves with technology partners to improve energy efficiencies in the building, in line with the HISOT mandate.
Key investors in the fund include Uniting Financial Services and the Clean Energy Finance Corporation (CEFC).
“Uniting Financial Services (UFS) is actively pursuing investments that implement the Uniting Church’s ethical investment policy in a way that has a positive impact,” Executive Director, Warren Bird, said.
“Our co-investment with CEFC in the HISOT is an important component of our strategy in the commercial property sector. We’re pleased to see another suitable asset being acquired for the trust and we thank EG Funds for their excellent work in researching and bringing the transaction to fulfilment. We look forward not only to the financial returns from this investment, but also to improving the building’s energy efficiency and reducing its environmental impact.”
The Clean Energy Finance Corporation, a cornerstone equity investor in HISOT, has welcomed the latest addition to the portfolio.
CEFC Investment Funds Lead, Rory Lonergan, said, “We are delighted to see the addition of another asset to the HISOT portfolio. Through upgrading this nearly 30-year-old building, EG will demonstrate how underperformers can be reinvigorated to provide dynamic workspaces that are valued by tenants because they are equipped to handle the demands of a clean energy economy.
“Energy efficiency upgrades can give older buildings a new lease on life, combining the latest technology and building improvements with dynamic new workspaces that are welcomed by tenants.
“We’re very pleased to be investors in HISOT because we see it as a demonstration of how existing buildings can be a key part of the wider move toward zero carbon buildings that is currently underway in Australia’s commercial property sector.”
In early 3018, EG settled on the $15.4 million East Block asset in Canberra’s Parliamentary Triangle, which was the first asset in the HISOT fund.