Offshore fund outlays $15.3m for Fyshwick office

The double storey office collects annual rent of approximately $1.1m net.

An offshore fund is spending $15.3 million on a Fyshwick office which derives 79 per cent of its income from the federal government.

The price for 5 Tennant Street reflects a 7.2pc net passing yield.

Listed in March, the asset includes two supersized floors providing a total 4049 square metres of lettable area and an under-croft car park with 115 bays.

It sits on a 4703 square metre site about seven kilometres south east of Parliament House.

Raine & Horne Commercial Canberra’s Michael Ceacis and Michael Lo Pilato said the Fyshwick office has been highly occupied since it was built 13 years ago.

Fully rented to six groups, the asset’s weighted average lease expiry, measured by income, is 6.8 years (story continues below).

The Fyshwick office is about seven kilometres south east of Parliament House.

It also carries a 4-star NABERS rating.

Six offers were received, the brokers added.

“We managed to get an excellent outcome for all parties involved,” Mr Ceacis said.

“With a limited supply of assets on the market, buyers continue to jump at the opportunity despite the current market conditions.

“Canberra’s strong market fundamentals attract worldwide interest,” he added.

The federal government pays 79 per cent of 5 Tennant Street’s rent.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco