This article is from the Australian Property Journal archive
THE Elanor Commercial Property Fund (ECF) has struck a lease renewal agreement with the Commonwealth government’s Department of Employment and Workplace Relations over the entirety of a near 11,000 sqm Canberra office building.
The lease over 10,873 sqm at Garema Court, 140 City Walk represents 13% of ECF’s gross annual income.
It has been extended to 30th June 2026, halving FY24 lease expiries from 24% to 12% of gross income.
“This lease extension enhances the Fund’s income by eliminating the requirement for planned capex (to facilitate the lease renewal) while maintaining the property’s strong passing rent,” ECF said.
The fund’s occupancy remains at 96%.
ECF bought Garema Court for $71.5 million late in 2019 from Dexus, which had held the asset for nearly 20 years.
Canberra was the only CBD office market to record negative net absorption during the March quarter, at -1,300 sqm, according to JLL, but its vacancy rate of 7.8% remains lower than other markets.
