Nearly $1.5 billion in national capital workspace traded last year, many leased to federal or ACT government agencies — and this year is off to a good start, too.
A major attraction for investors is the city’s strong rental market. According to JLL, vacancy rates in the national capital fell to their lowest level since 2008 in the March quarter due to continued tenant demand, particularly for high-quality buildings.
German investment manager Real IS owns the Geoscience Australia building, which it purchased for $234 million in late 2006. It has a net lettable area of 31,000 square meters and is let until 2032.
Real IS controls the closed-end retail fund housing the investment, which Charter Hall would purchase at a gross yield of approximately 7 percent based on net income of $26 million. Agents of Colliers and JLL marketing the asset declined to comment.
Meanwhile, the two-tower office building at 21 Genge St in Canberra’s CBD is on the market. Leased to the Australian tax office, market insiders said it had a price guide of $380 million to $400 million.
