Castlerock Unveils $55 Million Carbon-Neutral Development in Townsville

Castlerock is proud to announce the development of a brand new, carbon-neutral office building in the heart of Townsville’s CBD. Located at 158 Walker Street, construction of the 6,500m², A-grade office space is set to commence in November 2024, with completion expected by mid-2026.
Upon completion, this landmark project will be Castlerock’s first carbon-neutral building, boasting industry-leading sustainability credentials, including a 6-star NABERS energy rating, a 5.5-star NABERS water rating, and a 4-star Green Star rating. The building will incorporate a range of advanced green technologies, such as a minimum of 99kW solar array on the rooftop, which will contribute significantly to the building’s energy supply. A highly efficient air-conditioning and lighting system will ensure optimal energy usage, with all systems remotely monitored and controlled from Castlerock’s Melbourne office. Further supporting its eco-friendly design, the building will harvest rainwater and reuse water from its mechanical services for toilet flushing, significantly reducing water consumption and minimizing environmental impact. Together, these features underscore Castlerock’s commitment to sustainable development and reducing environmental impact in every facet of the building’s design and operation.
End-of-trip facilities are a central component of the building’s design, promoting sustainable and active transportation options for tenants. The development will feature 46 secure bike racks, ample showers, and locker facilities, creating an inviting environment for employees who commute by bike or on foot. These facilities are intended to foster a healthier, more eco-friendly work culture, making sustainable commuting an easy choice. Additionally, the building will provide 107 secure car parking bays, offering a balanced approach to accessibility for all tenants.
In addition to its sustainable design, the building will include approximately 200m² of retail space at ground level, including a café. Castlerock is currently seeking an operator to partner with for this new facility, which will add to the building's community and lifestyle appeal.

The new Townsville development strengthens Castlerock's commitment to Townsville, adding to their existing asset in the region at 445 Flinders Street, purpose built for and occupied by the Queensland State Government. This expansion highlights Castlerock’s dedication to creating high-quality, environmentally responsible developments that contribute to the local community.
Castlerock would also like to extend its gratitude to the Townsville City Council for their efforts and dedication throughout the development approval process. Their professionalism and efficiency have been exemplary, ensuring a smooth and timely progression of the project. Castlerock appreciates the Council’s commitment to supporting developments that bring lasting value to the Townsville community.
Hank Bronts, CEO and Founder of Castlerock said: “The new building will enhance our already robust and successful Castlerock Government Property Fund, reinforcing our reputation for providing high-quality, government-leased assets. We’re excited to deliver a project that benefits both the community and our investors, ensuring sustainable growth for the future.”
Harriett Sestak, Development Manager at Castlerock, emphasized the community benefits of the project. “We’re excited to collaborate with the Traditional Owners of the area and to explore meaningful partnerships throughout the development,” she said. “This project is a testament to our commitment to sustainability and the Townsville community, and we’re thrilled to deliver a carbon-neutral asset that will serve the Commonwealth Government and the wider community for years to come.”

Townsville Mayor Troy Thompson said the project was a strong example of what the future of Townsville could look like. “As a Council we’re thrilled to have supported this innovative project with our Housing and Jobs Incentive Policy, helping to drive investment in Townsville’s city and surrounds. As one of Australia’s fastest growing regional cities we’re always looking for ways to improve the city for the residents we have now as well as our growing population in the future,” Cr Thompson said.
This development will join the Castlerock Government Property Fund upon completion, further strengthening the Fund’s portfolio of government-leased assets. The Fund currently has a forecast distribution rate of 7.85% and comprises $525 million across 13 buildings, with 96% leased by either State or Commonwealth Governments. This newest addition further enhances CGPF’s robust portfolio and commitment to delivering stable, long-term investments for its stakeholders.
