Castlerock makes largest acquisition to date

22 April 2020


Castlerock has acquired Far North Queensland’s primary State Government headquarters and critical emergency recovery centre in a $92.8 million transaction – the largest acquisition by the group to date.

The landmark Queensland Government building at 445 Flinders Street in Townsville is 89 per cent leased until September 2028, with a five-year lease renewal option.

It is one of the region’s most strategically important buildings, home to the Queensland Government’s North Queensland Recovery Centre, which because of its critical nature, was uniquely designed and built to Importance Level 4 and is able to operate without power or water for up to five days.

It was purchased within the Auslink Property Trust No.2, which now comprises nine buildings worth $243 million.

Castlerock Managing Director Hank Bronts said: “This is an extremely important acquisition purchased as part of our strategy to focus and target high quality assets backed by strong government covenants.

“Located within a key regional centre in Far North Queensland, it will deliver returns for a long time.”

In a demonstration of positive demand, the property was settled two months early due to increased investor interest.

With a 5-star Green Star Rating, 5.5 Star NABERS rating and Australia’s first 5.5-star Indoor Air Quality rating, the building brings together the Department of Transport and Main Roads, the Department of Natural Resources and Mines and the Department of Health and Education.

Designed by ML Design, it is one of Townsville’s best commercial addresses, classified as an A-grade property comprising 11,383 square metres of floorspace across nine levels and offering the largest column-free floorplates in the local market.

It includes an additional 252 square metres of retail at ground level and three-level podium carpark accommodating 195 parking bays that offer Townsville’s best carparking ratio of 1:60.