ISPT brings $600m-plus office tower portfolio to market

Superannuation fund-backed ISPT is joining the rush of property vendors and will bring a $600 million-plus portfolio of office towers to market.

100 Creek St in the Brisbane CBD could sell for $200 million.

Superannuation fund-backed fund manager ISPT is joining the rush of property vendors and will bring a $600 million-plus portfolio of office towers to market with the group looking to offload towers in Sydney and Brisbane.

The manager is looking to offload its building at 100 Pacific Highway in North Sydney, that it developed with Leighton Properties almost two decades ago and could sell for more than $400 million, and 100 Creek St in Brisbane that could sell for about $200 million. Both A-grade buildings are high quality assets in their markets and have kept tenants through the pandemic and have medium-term leasing profiles with upside in both markets.

ISPT will also sell two smaller buildings in Sydney’s North Ryde, that could draw developers chasing an exposure to rising suburban office markets

Real estate agency CBRE will market both towers, with Cushman & Wakefield also on North Sydney and Knight Frank on Brisbane.

ISPT and Leighton Properties teamed to develop the North Sydney tower in 2001 after buying the site for $26.5 million. It could benefit from the new metro station and the re-rating of the area by large tenants which has driven the development of projects by Winten, Dexus, Lendlease and Billbergia.

The Pacific Highway complex is a modern A-Grade office tower, prominently located in a sought-after business precinct. The building spans 18 levels of office space with two levels of basement parking. It is held in the ISPT Core Fund and comprises 22,401sq m of space and 129 car parks.

The Creek St building is a 24 level, contemporary B-Grade office tower in the heart of Brisbane’s CBD. It adjoins the popular laneway precinct Gresham Lane and has a renovated lobby with digital art installation and double-height pivot doors.

The building also has professionally fitted “Small Suites” for small to medium businesses and upgraded end of trip facilities. The complex spans 20,228sq m and has 79 car parks.

The North Ryde buildings will round out the portfolio and are being handled by Knight Frank and CI Australia.

No.1 Julius Ave is an A-Grade office building in the Riverside Corporate Park and has four levels of office accommodation and large, versatile floor plates. The 14,038sq m complex has generous basement parking and can accommodate 398 vehicles.

No.2 Julius Ave is a B-Grade office building, also in Riverside, and has four levels of office accommodation and two levels of basement parking. It sports a new foyer and end of trip facilities and spans 7170sq m.

Both buildings are near “The Village” with swimming pool, tennis court, cafes, health services and convenience store and could suit a repositioning play.

ISPT confirmed the move and chief executive Daryl Browning said it was timely to offer the assets due to reweighting of the portfolio particularly after 447 Collins St completed last year and 405 Bourke Street completes this year, along with VU Tower in Melbourne.

The proceeds will be used to fund the ISPT Core Fund’s development book and office refurbishments including 477 Pitt St, Sydney, and 500 Bourke St in Melbourne.