Future home of ACT Health at Bowes Street in Woden up for sale

A refurbished and newly-leased office building in the Woden Town Centre has hit the market and is expected to fetch about $60 million.

Formerly known as Penrhyn House, the six-storey property at 2 to 6 Bowes Street in Phillip will be sold via Colliers International.

The sale comes almost two months after a 15-year deal was signed to move 750 ACT public servants from the Department of Health into the Woden building.

Colliers International national director of capital markets Tim Mutton brokered the lease in August and will be running the international expressions of interest campaign on behalf of Quintessential Equity.

“This is a fantastic investment opportunity with the property perfectly positioned to capitalise on a prime location, quality refurbishment and long-term tenancy,” Mr Mutton said.

The property comprises three separate, integrated buildings with 12,348 square metres of net lettable area and 84 car spaces.

The building is 100 per cent leased and 95 per cent of the building is occupied by government tenants.

Quintessential Equity purchased Penrhyn House for $14 million in 2012 and spent about $10 million on upgrades, targeting a five-star NABERS energy rating.

New lifts, upgraded amenities and a facelift of the building’s facade were among the improvements.

Quintessential Equity chief operating office Russell Bullen said the company was excited to bring the property to market on behalf of its investors.

“The recent quality refurbishment of the property succeeded in attracting new state and Commonwealth government tenants, which will ensure future returns for any potential purchaser,” Mr Bullen said.

The ACT Department of Health’s 15-year lease will commence in April next year, accounting for 88 per cent of the building.

The Commonwealth government has a MyGov shopfront on the ground floor of the building and the property also houses a small Employment Plus drop-in centre.

The sale of 2 to 6 Bowes Street will be the town centre’s third major transaction of the year.

Aviation House, a nine-storey office building on Furzer Street, sold to a Queensland-based private investor for $68.1 million in May.

The property was 100 per cent occupied by three Commonwealth of Australia tenants.

The Medibank building, also on Bowes Street, sold to local investors Zapari Group for an undisclosed price.

A mixed-use development comprising 325 residential apartments, retail space, restaurants and a childcare centre is slated for the site.