This article is from the Australian Property Journal archive
A HERITAGE parliamentary office asset in the National Triangle has entered the market with a guide of $70 million and secure AAA-rated commonwealth government tenants.
West Block at 21 Queen Victoria Terrace, occupies a 1.7-hectare island site and offers more than 8,200sqm of premium office space, with an 11.3-year lease to the government with fixed income growth of 3.50% per annum.
The asset has undergone significant capital investment, with more than $45 million invested to upgrade the property into a premium-grade public servant facility.
Daniel Wolman and Oliver Hay from Cushman & Wakefield, alongside Paul Powderly, Alex McColl and Matthew Winter from Colliers, have been appointed to manage the sale.
“This is an asset of national significance, featuring the ultimate investment credentials — AAA-rated, 11.3-year income, with low-capex, annuity-style returns,” said Wolman.
“West Block’s place in Australian political history, combined with its location in one of the best-performing office submarkets in the country, political significance, and secure government lease, makes this a unique opportunity.”
The office was originally constructed in the 1920s when the federal government relocated from Melbourne to Canberra, once housing the prime minister’s office.
“West Block is poised to continue playing a central role in Australia’s government landscape for years to come,” said Powderly.
“With exceptionally low vacancy rates and long-term government tenancy, this is an investment that offers both stability and prestige at the most powerful address in Australia.”
Canberra’s office market remains one of the sturdiest in the country, with prime vacancy in the Parliamentary Precinct at just 1.6% with limited new supply under construction.
While the Canberra office vacancy reflects 9.5% or 8.8% in A grade assets.
With new A-grade space supply coming online across historically tight precincts in Canberra, with Knight Frank’s latest Canberra Office Market report showing the office market vacancy was up from 8.3% to 9.5% over the first half of 2024.
The property sits just 400m from Parliament House, with a major arterial road connecting the Parliamentary Precinct to the Civic CBD and a stop on the proposed light rail network extension just 500 metres away.
