The article originally appeared in Australian Property Markets News.
Real Asset Management is paying $115 million for a recently refurbished, fully leased Canberra office.
The deal with Lendlease’s Australian Prime Property Fund reflects a 5.5 per cent passing yield.
Over seven floors, the asset, 19-25 Constitution Avenue, also known as the Alan Woods Building, contains 16,679 square metres of lettable area.
It occupies a 5611 sqm site.
JLL’s Tim Mutton and Luke Billau with CBRE’s James Parry and Nic Purdue represented the vendor, which paid $31m in 2000.
The sale needs Foreign Investment Review Board approval.
RAM will hold the property in its Diversified Property Fund, backed by offshore investors; it is the trust’s second asset.
In June the manager outlaid $42.5m for four healthcare assets for its Essential Services REIT, which is set to float soon.
Late last year the group spent $100m on three hospitals, also for that fund.
Alan Woods Building
Constructed in 1988, the Alan Woods Building (pictured, top) is occupied by the federal government; part of it is Air Services Australia’s base.
The Weighted Average Lease Expiry by income is 5.9 years.
The office contains large 2500 sqm floor plates (story continues below).
Sales approaching $1b
Elsewhere in Canberra, Cromwell Group is understood to be paying close to $80m for a nearby eight storey office, 33 Allara Street, following an off-market Colliers negotiation.
Completed in 1989, and with c10,300 sqm of lettable area, the investment was offered by Molonglo after six years and a renovation.
The site abuts Canberra Casino.
Earlier this month we reported Charter Hall was spending $99m for 18 Canberra Ave, Fyshwick – part of a portfolio acquired from DOMA.
Also this quarter, Marprop acquired Barton’s Australian Federal Police College from Ethical Property Trust for $60.5m.
Sentinel, meanwhile, paid Centuria $83m for a 14-storey A-grade commercial building, Scarborough House, at 8 Atlantic St, Phillip.
Australian Capital Territory offices to trade in the first half of 2021 include:
- 38 Sydney Ave, Forrest, which Blackstone picked up from Valad for $73.75m;
- A Services Australia backed office at the south west corner of Anketell and Sheerin streets, in Tuggeranong, which Charter Hall acquired for $306m;
- Flax House, at 216-228 Cowlinshaw St, Greenway, purchased for $9.75m by KM Property Funds (which we reported on the weekend sold a Melbourne warehouse for a 100pc premium after two years);
- 10 Hobart Place, Canberra ($18m);
- Two-6 Shea St, Phillip, which Capital Holdings Group sold for $18.75m;
- The National Farmers Federation HQ at 14-16 Brisbane Ave, Barton, which the Cataldo family purchased for $7.71m.
The recently released Property Council of Australia Office Market Report puts Canberra’s vacancy at 7.7pc – the lowest rate since January, 2009.
More to come.