K1 office tower in Fortitude Valley sells for 130m

K1 office tower in Fortitude Valley sells for $130mImpact Investment Group has purchased the K1 office tower, Lend Lease’s first commercial building in Brisbane’s RNA Showgrounds redevelopment in the Fortitude Valley, for $130 million.Within Lend Lease’s $2.9 King’s Gate precinct, the 16,600 sqm, A-Grade tower at 1 King Street has been recently completed, and is anchored by Lend Lease and Robert Bird Group. The nine-storey building will accommodate more than 6,000 office workers and feature what is being touted as “Brisbane’s most flexible campus and floor plates”. The project is currently seeking Green Star ratings for design and construction.While Brisbane’s office market vacancy rate is at a current record high of 15.6 per cent, there is increasing demand for premium grade office stock in the CBD.The Property Council’s most recent Office Market Report, released in February, recorded a vacancy rate fall from 14.2 per cent to 9.1 per cent for premium grade commercial space.Impact has built a $200 million portfolio since 2013, and says it is focused on “values-based investment principles”.The Australian Financial Review reports that Impact is looking to raise money from self-managed super funds to acquire the asset, and is forecasting average distribution to investors of 10 per cent a year.The company currently invests in property and assets such as renewable energy, and says its model enables investors to choose managed assets that “don’t just make money, but add value to the economy, environment and community”.