Irongate offloads Canberra office

Irongate recently paid Blackstone $73.75 million for 38 Sydney Avenue, Forrest.

Investec Australia Property Fund managed Irongate Group (IAP) has sold a Canberra office leased to the Attorney General department after 30 months.

The ASX-listed company is banking $36m from the sale of 24 Wormald Street, Symonston, to Charter Hall which will hold it in the Direct Property Fund.

In September Irongate teamed with Frasers Property Australia to buy Yarraville’s ex-Bradmill factory.

It paid Westtech Holdings’ Stavro Dascarolis and Jim Sarris $29.75m.

That seller developed the 4720 square metre building (Google Street View image, top) in 2007.

The site spreads 5186 sqm.

“We previously advised the market that we would look to sell properties where we believe valuation creation has been maximised, to protect against downside risk or to improve the overall quality of the portfolio,” IAP chief executive officer Graeme Katz said.

“With six years left to run on the lease to the Commonwealth of Australia, and strong demand for high quality office properties, we determined that it was an opportune time to consider a sale,” he added.

“It also provides an opportunity to rebalance the fund’s geographical exposure to the ACT following the recent purchase of 38 Sydney Avenue [Forrest] for $73.75m”.

The sale price is 18 per cent over book value ($30.5m).

Proceeds will be used to repay debt.

In September, we reported IAP teamed with Frasers Property Australia to acquire the ex-Bradmill factory, in Melbourne’s inner-west Yarraville, for c$225m with plans for a major residential project and shopping centre (story continues below).

Charter Hall and GIC spent c$300m for 50 Marcus Clarke Street two months ago.

Not long earlier IAP acquired Michael Hill’s headquarters, in Brisbane, for $36m on a funds through basis.

Charter Hall reweights

Charter Hall, meanwhile, has been building its Canberra office portfolio – in September picking up 50 Marcus Clarke St, in a partnership with GIC, for c$300m.

Three months ago it paid DOMA $99m for 18 Canberra Avenue – also known as the Doris Blackburn Building.

In May the group spent $306m for Tuggeranong’s Services Australia office.

That seller was South Korea’s AIP Asset Management.

Symonston is about seven kilometres south east of Parliament House.

Investec is listed on the Johannesburg stock exchange.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of