This article is from the Australian Property Journal archive
FUND manager Charter Hall has made a seismic move in Canberra’s office market, spending $363.5 million on the Geoscience Australia HQ property, in the city’s largest commercial property sale in history.
The acquisition by three Charter Hall managed funds was made by way of sale of units in the trust, with the sale price reflecting a 7.4% initial yield.
The property spans a site of 160,378sqm and the 32,659sqm NLA facility, comprising specialised laboratory facilities and the National Earthquake Alerts Seismic Centre, with amenities including 652 parking bays, a childcare centre, end-of-trip facilities, a public gallery, research library, café and gym.
Colliers and JLL facilitated the transaction, fielding strong levels of interest from both domestic and international capital sources, on behalf of German group Real I.S.
“This property is very special and we knew that based on the investment credentials it had the potential to achieve a record sales price,” said Paul Powderly, state chief executive at Colliers, ACT.
“The Geoscience Australia HQ is arguably one of a kind. The work conducted there is vital to every Australian. It includes maximising the value to society from Australia’s mineral and energy resources, sustaining our water use and strengthening our resilience to natural hazards.”
Sitting 7km out from the CBD with easy access to key arterial road links, Geoscience HQ is 100% occupied by the Commonwealth of Australia and is underpinned by a secure long-term income stream with fixed annual escalations of 3% and a 9.6-year WALE.
The asset also aligns with leading ESG principles with a geothermal heat pump system and having achieved a Climate Active Carbon Neutral certification.
“Charter Hall has shown it recognises the strength of our market and the value it offers investors. This purchase further expands its growing ACT portfolio,” said Matthew Winter, director of capital markets and investment services at Colliers.
Both Charter Hall Social Infrastructure REIT (CQE) and Charter Hall Long WALE REIT (CLW) acquired a 25% share in the property at $90.9 million each.
CLW predominately funded its share from its recently offloaded I&L facility at 364-426 Old Geelong Road, Hoppers Crossing, Victoria.
With the transaction expected to settle in December, the facility sold in-line with book value at $74 million, on a 4.5% capitalisation rate and with a 3.5-year WALE.
