Marprop has sold a Canberra office and training facility held five years.

The asset manager banked $86 million for the Australian Federal Police College, also known as Lawley House or Barton House, at 9 Brisbane Avenue, Barton.

The deal with an ACT syndicate led by Aegis Property reflects a 5.73 per cent passing yield.

Marprop paid $60.5m.

That seller, the Australian Ethical Property Trust, outlaid $30.75m in 2011.

Australian Federal Police College

On 1.47 hectares near the base of Parliament House, opposite Lake Burley Griffin, the asset contains 10,252 square metres in a brick building constructed in 1949 as public servant accommodation.

It was repurposed for the AFP in 1978, retaining some residential.

Marprop bought it with a lease expiring next year, it was speculated as a medium-term development play (continues below).

Instead it renewed the tenant, now committed until June, 2036.

Colliers’ Matthew Winter brokered the off-market sale.

The deal comes four months since 23 Furzer Street, Woden – the Sirius complex – sold to Paul Lederer’s LDR Capital.

Mirvac was that seller.

The deal was worth $305m.

Colliers was again the marketing agency.

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The Kuala Lumpur-listed publisher this week confirmed its wholly owned unit, Star Publications (Singapore) Pte Ltd, subscribed to units in TrustCapital Australian Office Fund No. 3, a private closed-end vehicle managed by TrustCapital Advisors Investment Management Pte Ltd.

The fund will focus on properties leased to corporate and government tenants.

Star Media said the investment forms part of efforts to diversify its revenue base and enhance recurring income, complementing existing placements in money market funds (continues below).

The investment will be funded through internally generated funds, the company said in a filing, adding it will establish an investment committee to oversee the exposure.

Star Media shares last traded at $0.10, valuing the company at c$74m.

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Marking its entry to the ACT, family entertainment operator Area 51 has signed a long-term lease for a large format site at Fyshwick.

The operator will occupy a 4977 square metre building, 2/16 Ipswich Street, following the 15 year commitment.

The property will form part of a 3.2 hectare estate being delivered by Bronte Group on a site acquired in 2022.

Nikias Diamond is the builder.

Area 51 also operates in New South Wales and Queensland.

Area 51 comes to Canberra

Area 51 operates indoor recreation centres offering play-based and family-oriented activities – tapping into the broader experiential leisure segment (continues below).

With the deal, the Fyshwick estate is fully leased.

Other occupiers include Coates Hire and sports operator Badminton Worx.

Bronte was represented by Ray White Commercial’s Daniel McGrath.

Fyshwick is five kilometres south east of Canberra’s CBD.

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Paul Lederer is buying a major campus style office in Canberra’s geographic centre.

The Yaradhang Building on 1.04 hectares at Phillip is speculated to be setting the billionaire back $305 million – an 8.2 per cent net passing yield.

Mirvac was the seller on behalf of the Mirvac Property Trust.

It sold against a $336m mid-year valuation which assumed a 6.75 per cent capitalisation rate and 7.36pc discount rate.

Book value was $345m when it the market late last year.

Phillip is about 10 kilometres south of Canberra’s CBD.

Yaradhang Building

Built by Mirvac in 2010 for the Department of Health which still occupies, the Yaradhang Building at 23 Furzer Street is one of six metropolitan Canberra offices with 6-star NABERS Energy and NABERS Water score.

It contains 46,617 square metres over 10 floors – supersized floorplates of 1.2 acres.

The area is rated A-grade – renovated at a cost of c$68m since 2019 including to upgrade the end of trip facilities and lifts.

There are also 374 car parks in a two level basement.

The federal government is on a lease expiring in 2035 with a five year option. It presently pays $25m annual rent. The agreement includes 3.25pc annual rent rises over the initial term.

A ground floor café tenancy is leased to Blue Fex.

The office was renamed from Sirius in 2023 following a protest from some of the c4000 public servant workers there, about a colonial connection (Sirus is the flagship from the First Fleet).

Yaradhang is the Ngunnawal term for eucalyptus.

Colliers’ Matthew Winter and James Mitchell with JLL’s Tim Mutton, Luke Billiau and Kate Low said the office exceeds the federal government’ Net Zero Government Operation Strategy.

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The Tavner family has sold 12 Doors Plus outlets with leasebacks.

The c$30 million deal comes six months since the group divested 80 per cent of Doors Plus’ operating business to Colinton Capital Partners for over $60m.

The partnership intends to open 10 outlets in the short term.

It will also refurbish many of its 22 stores.

The group also maintains five distribution centres.

The deal comes a fortnight since the owner of retailer 99 Bikes sold eight outlets with leasebacks.

In September meanwhile, Wesfarmers shed six Bunnings outlets with leasebacks.

Doors Plus portfolio

The Tavner family established Doors Plus in south west Sydney 36 years ago.

The portfolio, offered individually with three year leasebacks with a three year option, includes:

• 9-10/7 Hollylea Road, Leumeah, NSW
• 11/19 Victoria Avenue, Castle Hill, NSW
• 3A Debenham Road, Gosford West, NSW
• 3/2 Parramatta Road, Clyde, NSW
• 276-282 Ballarat Road, Footscray, Victoria
• 1/603 Whitehorse Road, Mitcham, Victoria
• 909 Princes Highway, Springvale, Victoria
• 1/1523 Sydney Road, Campbellfield, Victoria
• 1199 South Road, St Marys, South Australia
• 213-215 Main North Road, Sefton Park, South Australia
• 62-66 Brisbane Road, Labrador (Gold Coast), Queensland
• 174 Gladstone Street, Fyshwick, ACT

When listed in May, there were 13 properties, two, vacant.

The buyers are all private investors and family offices, though syndicates institutions looked in, the agents said.

A New South Wales buyer bought three – at Fyshwick, Leumeah and Springvale.

Both South Australian properties sold to locals.

A Victorian investor meanwhile acquired one of the Queensland stores.

“Despite short lead times and a complex mix of titles and lease structures, buyer engagement was overwhelming , confirming the enduring demand for well located trade retail assets,” Colliers’ James Quick, who marketed the properties with Jordan McConnell, said.

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A large format retail complex with 150 car parks, in Canberra’s south east, settled to an interstate investor this month.

The $17 million result for Iron Knob Square at 17 Iron Knob Street, Fyshwick, reflects a 5.7 per cent net passing yield based on the return when the asset was listed mid-year.

Eleven offers were received following an expressions of interest campaign, the agents said.

The deal comes five months since Gibbens sold a Newcastle LFR investment held 11 years while Melbourne’s Dimmick family shed one on the Sunshine Coast.

HMC Capital offloaded two properties of this type this year, at Ballarat, Victoria, and Brisbane’s Logan, the latter to Centuria.

Iron Knob Square

On 1.02 hectres, Iron Knob Square is fully leased with 5068 square metres in 12 tenancies.

Auto One, Chemist Warehouse and Ten Tops are the anchors.

Some of the car parks are undercover.

The holding is opposite Armada Funds’ Canberra Outlet Centre, with 120 retailers including Amart, BCF, Bing Lee, Bunnings, Domayne, Harvey Norman and Tool Kit Depot.

Burgess Rawson for CBRE’s Yosh Mendis and Geoff Sinclair with Burgess Rawson ACT’s Guy Randall were the agents.

The buyer outbid other interstate investors, according to the executives.

“The property enjoys fixed annual rent escalations between 2.5- 4pc, enhancing its long-term income profile, they added.

Fyshwick is five kilometres from the CBD.

The property is a c3.5km drive to Canberra International Airport.

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Charter Hall has announced a handful of property deals for its Social Infrastructure REIT (CQE).

In the biggest direct trade, it is paying $68.4 million for a 22.5 per cent stake in a Western Sydney University backed vertical campus, at Parramatta.

The result for the interest in the One Parramatta Square reflects a 6.2pc initial yield.

The seller is the Charter Hall Direct Office Fund.

Western Sydney University owns half the property.

In the ACT, CQE is repeating a move this month by Charter Hall’s Long Wale REIT (CLW), increasing its share of Symonston’s Geosciences headquarters (pictured, top), from 25pc to 33.3pc.

Like CLW, it is paying $28.7m on an 8.4pc initial yield.

Charter Hall paid $370m for the 1.6ha asset in 2022 – a record price for a Canberra property.

That seller, German asset manager REAL IS, coincidentally also set a price watermark when it bought it from the Motor Trades Association in 2006 for $234.1m.

“This unique social infrastructure asset is fully leased to a federal government agency and incorporates specialised laboratory facilities with a net lease structure of 6.9 years and 3pc fixed annual increases,” the manager said in a statement.

Also being reported on behalf of CQE this week is the sale of 30 early learning centres for a total $151.1m – an average yield of 4.4pc and a premium to book value of 8.3pc.

Finally – as reported February – the fund bought a healthcare investment in Perth’s Osborne Park from Australian Unity for $47m – a 6.4pc return and discount to (the $48.1m) book value).

Last week we reported Charter Hall, on behalf of CLW, traded assets including a stake in a federal government backed dog training facility on 38.5ha in Melbourne’s Bulla.

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The Suburban Land Agency has awarded Woolworths’ development arm, Fabcot, the tender to develop a mixed-use complex within the master-planned Moncrieff community, in Canberra’s north.

The Moncrieff Group Centre, as it will be known, set for a 2.47 hectare site at the corner of Horse Park and Mirrabei drives, will contain – as well as a supermarket – retail and dining – part of a complex branded Moncrieff Village (pictured, top).

It will also include up to 106 dwellings – 16 allocated for affordable housing.

Clarke Hopkins Clarke penned the project.

“This is a really exciting step forward for Moncrieff,” Suburban Land Agency chief executive officer, Adam Davey, said.

“The new group centre will be a people-focused place where the community can come together,” according to the executive.

Woolworths state manager, Property Development, NSW and ACT, Wesley Dose, added Fabcot is aiming for the development to be 7.5-star or higher NatHERS rated.

Settlement is scheduled today.

The group has form buying and developing assets.

It also regularly sells complexes once complete with part leasebacks.

Woolworths and Coles are also know to pay premiums for large sites in Melbourne’s inner-city, able to capture large and growing catchments (the latter, in 2023, buying a Balaclava site for a price reflecting a sub two per cent yield).

The Moncrieff tender comes seven weeks since we reported Fabcot was permitted to replace the ex-501 Reception site in Melbourne’s inner-west Footscray with a Woolworths-anchored mall, to be known as Barkly Village West Footscray.

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A modern Canberra office carrying a 68 per cent vacancy rate has sold off-market.

The six storey, 5467 square metre asset, 4 Mort Street, is collecting $18 million from an an established local investment house.

The seller, an entity associated with ex-Trafalgar director, Robert Whyte, paid $14.75m in 2013, shortly after a refurbishment, including to the end of trip facilities, and upgrade of the plant and air conditioning.

That result reflected a 13 per cent net passing yield; it was fully let to the federal government.

Today 3744 sqm is vacant.

Revamp planned

The Mort St office carries a 4.5-star NABERs rating.

The ground floor is also configured with retail.

“The purchasers intend to undertake a strategic refurbishment, optimising on the increasing tenant demand for modern, flexible office space in the CBD,” JLL’s Mitchell Frail who brokered the off-market deal with Tim Mutton, said.

“Deals like this demonstrates the continued vibrancy and potential within the Canberra commercial property market,” he added.

The deal comes eight months since we reported Charter Hall sold the Doris Blackburn building at Forest for $72m – a drop on the $98m paid to Doma in mid-2021.

Also last year meanwhile, ISPT divested 2 Constitution Avenue, Canberra.

Growthpoint was the buyer, for $90.1m.

Like 4 Mort St, already modernised, it too is set for another refurbishment.

More to come.

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Elanor Investors Group has sold a five year old retail investment opposite the Belconnen Fresh Food Market.

The two neighbouring buildings and 79 basement car parks, 2 Ibbott Lane, fetched $24.2 million from Sydney based Stirling Property Funds.

Highly exposed to Belconnen Way, with 3787 square metres, tenants include Barbecues Galore, Chemist Warehouse and Petbarn, amongst others.

There is also a medical centre.

Stonebridge’s Alexander James-Elliott, Philip Gartland and Michael Collins were the marketing agents; the managed asset was offered as seven strata pieces or in one line.

Elanor entered voluntary suspension last August, then in November struck a refinancing deal to repay a speculated c$125m debt by March.

In February it shed a Wagga Wagga hotel while late last year it sold a Port Macquarie hospitality venue to the NRL.

Stirling backs Canberra growth corridor

Belconnen is a designated growth corridor nine kilometres north west of Canberra’s CBD.

“The Belconnen Convenience Retail Centre was Stirling’s fourth investment in its strategy of building out a portfolio of quality convenience and Large Format Retail assets in high growth areas where there are significant barriers to entry,” the asset manager’s head of Property, Scott Girard, said.

“Our acquisition of this thriving shopping precinct was well-supported by our clients who continue to be attracted to the defensive qualities of the convenience-based retail sector and the opportunity to create value through active asset management,” he added.

“The trade area is growing 37 per cent faster than Sydney with per capita income 18pc higher than Sydney, which provides strong growth prospects for highly-accessible, well-serviced areas like Belconnen in the ACT,” according to the executive.

“A generational” $6.1 billion infrastructure investment program (including the new Northside Hospital and the University of Canberra Masterplan) within two kilometres of the site, is also underway”.

Last November we reported Stirling outlaid more than twice what it spent at Belconnen for Sydney’s McGraths Hill Home.

That seller was HMC Capital on behalf of the HomeCo Daily Needs REIT.

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