A complex occupying an entire Canberra city block is expected to sell for more than $85 million.
The Finlay Crisp Centre, which comprises Customs House, Allara House and the Nara Centre, will be sold by DEXUS Property Group through JLL via an international expressions of interest campaign.
The complex is fully occupied. Custom House and Allara House are leased to the Department of Immigration and Border Protection until 2019, while the Nara Centre is leased to the ACT government until 2020.
JLL ACT’s head of sales and investments Michael Heather and JLL Australia’s head of office investments Rob Sewell are marketing the sale.
Mr Heather said a CBD asset of this scale is a rare offering in the nation’s capital. The 8844-square-metre block boasts a net leasable area of 29,982 square metres.
With street frontages to Constitution Avenue, Allara Street and London Circuit, Mr Heather said the sale presents a unique opportunity for an investor to add value to the property.
“Canberra is currently being assessed as a desirable investment destination by both national and international investors, and there are a number of very active buyers currently seeking core-plus office opportunities,” Mr Heather said.
“The weighted average lease expiry of just over three years provides an immediate secure income stream to AAA-rated tenants, while allowing flexibility to reposition the asset and to improve the income and tenancy profile.”
Mr Sewell said a shortage of office stock in Canberra’s CBD, tight vacancy rates and strong yields would increase the appeal of the asset.
“The asset’s location in the Civic precinct, which has the tightest prime grade vacancy rate of all monitored CBD office markets in Australia of 4.8 per cent as of 2016, also strengthen its value proposition,” Mr Sewell said.
According to JLL Research, prime gross effective rents in Canberra have recorded year-on-year growth of 2.5 per cent as of the second quarter of 2016.
The research indicates that prime gross effective rents could increase in Canberra as vacancy rates drop.
“The improving Canberra office market presents a compelling case for looking at this asset,” Mr Heather said.
The Finlay Crisp Centre was designed as a campus-style development with large, efficient floor plates, ample car parking and views from the upper levels.
Expressions of interest will close on Thursday, September 8.