Independent fund manager Castlerock has finalised its $28.8 million purchase of the redeveloped C. H. Smith building.
The redeveloped woolstore in the Launceston CBD was purchased within the Auslink Property Trust No. 2 fund, which was launched by Melbourne-based Castlerock in 2014.
This fund now comprises eight properties with a collective value of $150 million.
Castlerock purchased the C. H. Smith building, which was originally built in the 1830s, from Launceston developer Errol Stewart last month after its completion.
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Founder and managing director Hank Bronts said the purchase was a strategic one, which fitted with Castlerock's exclusive focus on long-term, Commonwealth and state government-tenanted buildings.
"This property aligns with our investment strategy to purchase modern, sustainable, government-leased assets that provide our investors steady returns from stable assets," Mr Bronts said.
"We're very pleased to be the new owner of this historic and thoughtfully-redeveloped property that will provide investors with a predictable income stream.
"A significant number of Tasmanian investors bought into the recent equity-raising, which indicates a strong local demand for assets of this type," he said.
The 5800-square-metre commercial property at 18 Charles Street is now fully tenanted, with Service Tas opening its new branch on Monday.
More than 80 per cent of the C. H. Smith building floor space is occupied by Tasmanian government departments, with a café and real estate agency completing the tenancy.
The state government's 15-year lease at the site follows a strategic consolidation of departments and office space in and around Launceston, which Treasurer Peter Gutwein called "a more efficient utilisation at government occupied sites".
Staff from Communities Tasmania, the Health Department, Human Services and the Education Department also moved into the C. H. Smith building, while Henty House remains occupied by government tenants.
Launceston architects ARTAS designed the redeveloped building to have a 5 Star NABERS energy rating and a 5 Star Greenstar accreditation.
Castlerock manages $350 million in funds and has a national property portfolio of 36 assets, which have a 100 per cent occupancy rate.
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