Charter Hall lines up another Canberra office
Charter Hall is believed to be making another Canberra play, this time for a Braddon office about to be vacated by one of its biggest tenant clients.
The fund manager is speculated to be paying $290 million for 21 Genge Street.
Developed in 2008 for the Australian Taxation Office, which is on a lease expiring in five years, the result reflects a high 7.5 per cent yield.
The vendor is German fund manager Real IS, which paid $204.5m in 2009.
The deal comes three months since the pair traded another Canberra office – the Geoscience Australia headquarters, at Symonston, for c$370m – a region high for an asset of this type.
Colliers’ Paul Powderly, Matthew Winter, Adam Woodward and James Mitchell with JLL’s Tim Mutton and James Barber were the agents.
Charter Hall backing Canberra
On 5776 square metres at the south west corner of Cooyong St, also with frontage to Murulla Lane, the outgoing ATO headquarters rises 10 levels over a 277-bay basement car park.
Inclusive of retail, which the government doesn’t lease, there is 43,256 sqm of lettable area (story continues below).
Certified carbon neutral, it carries a 5-star NABERS rating.
Charter Hall is believed to be intending a major refurbishment, capitalising on the location’s vacancy, well under the city average (8.6pc according to the Property Council of Australia’s August, 2022, Office Market Report).
Any purchase comes in the week the manager announced it purchased the unbuilt Barton office the ATO will relocate from Braddon to from 2025.
That c$300m asset, 15 Sydney Avenue, is earmarked for the Prime Office Fund.
Elsewhere in Canberra, Charter Hall also recently purchased 50 Marcus Clarke St, in the CBD – near its latest Braddon asset – for c$335m, 18 Canberra Ave, Fyshwick ($99m) and 24 Wormald St, Symonston ($36m).
Last May it picked up the Tuggeranong Services Australia office for $306m.
Cushman & Wakefield’s Nick Rathgeber, Leigh Melbourne, Josh Cullen and Mark Hansen with Knight Frank’s Sean North marketed 21 Genge St.
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