Australia’s tallest engineered timber building will be developed in Brisbane by Lendlease and Impact Investment Group.
Impact Investment Group will fund the development of the 45m-tall building, 5 King, at the Brisbane Showgrounds complex and own the 10-level building on completion.
The valuation of about $140m reflects a net yield of 6.5 per cent.
5 King will offer 14,000sq m of lettable office space, and global engineering firm Aurecon has committed to lease four of the nine office floors.
IIG chief executive officer Chris Lock said the “highly innovative property” was a great example of how the fund invested in property.
“We’re committed to helping move Australia to a low-carbon future,” he said.
“We look for property investments with excellent potential for environmental sustainability, where we can fund best-in-class construction, or actively manage existing properties to drive energy efficiency and very positive social outcomes.”
Designed by Bates Smart with engineering services from Aurecon, the materials will come from new, sustainably-sourced, engineered timber.
It will use cross-laminated timber (CLT) for the floors, lift shafts and stairs; glue-laminated timber for the beams and columns; energy-efficient LED lighting, optimised air-conditioning and rooftop rainwater harvesting.
IIG said engineered timber buildings produced about half the volume of carbon emissions compared to equivalent concrete and steel during construction and ongoing operation.
The building will be Lendlease’s second office tower in the $2.9bn regeneration project of the Brisbane Showgrounds, in Bowen Hills, less than 2km from the city centre.
The K1 Kingsgate tower is a certified six green star building.
Lendlease chief executive officer for property, Kylie Rampa said 5 King was the latest example of high-performance workplaces setting new benchmarks in environmentally sustainable practices.
“The office building will offer tenants the opportunity to generate significant business benefits through large, efficient floorplates that provide flexibility for a variety of modern workplace formats,” she said.
Aurecon’s Queensland Regional Director Neil Barr said costs were reduced in the engineering design by using digital design and modularisation.
“Our firm has long seen timber as a viable alternative to steel and concrete and 5 King will showcase the strength of CLT in a 10-storey building,” he said.
Lendlease (LLC) is building the tower, which is due for completion in November 2018.
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