Canberra office trades at a loss
Fund manager Arcana Capital, led by former Queensland premier Campbell Newman, has picked up a Canberra office for $17.4 million – a 9.3 per cent drop on what the vendor paid two and a half years ago.
The result for The Capital Centre at 2-6 Shea Street, Phillip, demonstrates a high 9.15 per cent yield, reflecting the short weighted average lease expiry of 2.7 years, by income.
Occupiers include Aboriginal Hostels – which occupies 60pc – Feros Care and Suncorp; the asset contains 4102 square metres of A-grade area and 124 car parks.
The 4487 sqm site at the corner of Athllon is next to the Woden Bus Depot, due for completion in 2025.
Cushman & Wakefield’s Mike Walsh, Peter Court and Daniel Cullinane represented the vendor, a private investor which paid $18.75m.
The Capital Centre
Developed in 2010, The Capital Centre is about seven kilometres south west of Parliament House (story continues below).
“The Canberra office market is experiencing robust tenant demand, supported by a B-grade vacancy rate of 5.9pc, lower than the 10 year average of 10.2pc,” Mr Court said.
“Favourable economic conditions, increased public spending and growth in white collar employment create an attractive investment environment in the Canberra market,” he added.
The sale comes since weeks since Sydney fund manager Serene Capital paid Melbourne’s Shakespeare Property Group $41.5m the Abode Hotel and Apartments Woden, or Abode Woden, at 10 Bowes St.
That seller, Geocon, offered the office conversion with a 15 year leaseback.
In July meanwhile, Centuria sold the former Phillip Fox Centre at 54 Marcus Clarke Street, in Canberra’s CBD, for $23m, a 1.7pc discount on the ($23.4m) June, 2023, book value.
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