This article is from the Australian Property Journal archive
CANBERRA’S Garema Centre commercial complex will make way for a luxury hotel after local developers Geocon triumphed over other bidders with an offer of $13.35 million.
The standalone building is on a 1,052 sqm site at 70 Bunda Street and is zoned CZ1, which also allows for residential use.
But selling agent Matthew Winter of Colliers International said Geocon is looking to deliver an international standard hotel, bringing a new hotel brand to the nation’s capital, and have engaged the services of architects Fender Katsalidis for the project.
Works are slated to begin in 2019 and completion in 2020.
“Unlike many assets offered for sale this year, the flexibility of the 70 Bunda Street site made it an attractive option to a very broad range of buyers,” Winter said. “We saw significant interest from developers, investors, student accommodation providers, owner-occupiers and hoteliers,”
He said the expressions of interest campaign attracted buyers from Canberra, Sydney, Brisbane and Melbourne.
“We saw significant enquiry from hoteliers, and it is not surprising considering the strength of the Canberra hotel market. Canberra hotels were the best performing in the country, with RevPAR up 12.8%, compared to Australia-wide which saw an increase of just 2%, June year-to-date,” Winter added.
The Garema Centre was purchased partially vacant on a passing yield of 2.9%.
Winter recently sold the nearby fully leased 50 Bunda Street building for $9.8 million, at a 6.67% yield. The building was designed by Milan-trained Enrico Taglietti, who migrated from Milan to Australia in 1926 and brought the with him the European idea of an underground cinema, then unheard of in Australia.
Initially a four-storey office building with an underground cinema seating 500 people, it underwent substantial refurbishment in 2004 that saw the underground cinema converted into the popular Academy nightclub, with current tenants also including Shorty’s Bar, Provini Restaurant, Bartercard and CoCu Group.
Australian Property Journal
