The article originally appeared in Australian Property Markets News.
Real Asset Management is reported to be paying Lendlease $115 million for a recently refurbished, fully leased Canberra office.
Located at 19-25 Constitution Avenue, the 5,611sqm site contains a seven level commercial building with 16,679sqm of NLA.
Constructed in 1988, the Alan Woods Building is fully occupied by the federal government following a major leasing deal earlier this year cover 7,150sqm taking the The Weighted Average Lease Expiry by income to 5.9 years.
The Lendlease fund recently undertook an extensive refurbishment of the building, which included a full façade replacement, upgraded foyers and new end-of-trip facilities with secure parking for 100 bikes. The building features a highly adaptable layout with large, flexible 2,400 sqm floorplates. The works improved the building’s sustainability credentials and it now holds a 4.5 Star NABERS Energy Rating and 4 Star NABERS Water Rating.
Lendlease put the property on the market soon after the renovation.
Real Asset Management acquired the property for a new Diversified Property Fund backed by foreign capital. Real Asset Management is an Australian owned Wealth and Asset Manager specialising in Real Estate, Credit and Private Equity markets, for institutions and wealthy families globally. The Group opened its Australian office in 2013 and now has 5 offices in Sydney, Melbourne, Brisbane, Shanghai and Hong Kong. RAM provides more than 25 investment strategies and has a team of over 90 finance professionals managing in excess of A$1.8bn in assets.
The deal with Real Asset Management reflects a 5.5 per cent passing yield.