Townsville's Verde Tower sells for more than $90 million

Both deals were negotiated by Colliers Townsville associate director Neville Smith, who said the latest sale was a result of 18 months of negotiations.

“It is a huge vote of confidence for the region and, in particular, Townsville for a major fund management company such as Castlerock to invest in such significant assets,” Mr Smith said.

The 12-storey Verde Tower was completed in 2013 and comprises of 11,615 square metres of net leasing area with 190 parking bays and three podium levels.

The sale included an adjoining 1523 square metres of land at 232-242 Sturt Street, which is used for parking.

Verde has maintained ownership of the property since construction, according to its website.

“It is not often you see assets of this magnitude transact in regional areas as they are of a size that you would typically relate to the capital cities. Naturally, we are very pleased to have played a role in these two major transactions, particularly given 445 Flinders Street is the largest office building sale in Townsville and the region’s history,” Mr Smith said.

The tower houses the North Queensland Disaster Recovery Centre and is almost 90 per cent leased to the Queensland government. The property has a weighted average lease expiry of 7.8 years.

Colliers Townsville managing director Peter Wheeler said the Townsville market had been in the midst of an upswing prior to the COVID-19 pandemic.

“There is no doubt that, prior to the current situation we find ourselves in, Townsville had turned a corner and was on the way up,” Mr Wheeler said.

“We were experiencing the highest level of commercial property interest we had seen in years and boasting an impressive pipeline of major projects that was fuelling this interest,” Mr Wheeler said, adding that he hoped the sale would serve as a “reminder that there is a brighter future for Townsville waiting on the other side of the current situation”.