Paul Lederer secures major campus-style office
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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