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Charter Hall and GIC, a Singapore-based investment firm, have bought 50 Marcus Clarke Street in Canberra’s CBD for $ 335 million. It marks the highest selling price for a commercial office building in the Canberra area covered by the data company Cityscope. The transaction means the two companies will take over the site from Mirae Asset Global Investments, a South Korean investment company that allegedly bought the property for $ 321 million in 2017. During the joint venture, GIC will acquire a 95 percent stake in the property, while Charter Hall will acquire 5 percent. . MORE REAL ESTATE NEWS: The building, which spans about 40,000 square feet of office space, is fully leased by the federal government’s Department of Education, Skills and Employment. With its lease expiring in 2025, the department began looking for new office space in 2020. Kishore Gotety, co-head of real estate at GIC, said Canberra’s stable office market made the purchase a strong investment. “The Canberra market has performed well under COVID, with continued macroeconomic growth and low office turnover,” he said in a statement. “Going forward, we expect stable office demand, supported by healthy employment growth and government demand.” He added that the company would leverage Charter Hall’s “strong leasing capacity” to add additional value to the investment. The transaction follows the release of new data from the Property Council of Australia showing a modest increase in ACT workers returning to the office since the COVID-19 lockdown ended. The November survey among office owners in the area showed that the occupancy rate rose from 7 to 17 percent. Meanwhile, Canberra’s vacancy in the office, calculated on whether there is a lease in place for an office space, was among the healthiest in the country at 7.7 percent in August. Adina Cirson, ACT CEO at the Property Council of Australia, said the $ 335 million acquisition shows “great strength of confidence” in Canberra’s office market. “50 percent of our office market is leased by the Commonwealth, and that gives us a lot of strength when it comes to real estate security,” she said. “Having someone like Charter Hall to invest in Canberra consistently will really send a strong message to other investors around the country and abroad.” So it’s really positive and matches with confidence that we’re starting to see the return to the real estate sector here in Canberra. “Michael Andrews of CBRE, who led the sales campaign, said investment activity in Canberra’s office market was set to break records in 2021.”[Canberra is] “currently tracks $ 1.17 billion in total office sales, which has completely exceeded the annual average of $ 375 million, with another $ 300 million in sales in the pipeline,” he said. Among this year’s major office transactions was the Louisa Lawson Building at 25 Cowlishaw Street in Tuggeranong, which was sold for $ 306 million, shows CoreLogic data.In September, Lendlease sold 25 Constitution Avenue in Canberra City to Real Asset Management for $ 115.1 million, meanwhile 2-6 Bowes Street, Phillip was listed for sale in September and 40 Bunda Street in Civic hit the market in October.Our journalists work hard to deliver local, up-to-date news to the community.How to continue accessing our trusted content:
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Charter Hall and GIC, a Singapore-based investment firm, have bought 50 Marcus Clarke Street in Canberra’s CBD for $ 335 million.
It marks the highest selling price for a commercial office building in the Canberra area covered by the data company Cityscope.
The transaction means the two companies will take over the site from Mirae Asset Global Investments, a South Korean investment company that allegedly bought the property for $ 321 million in 2017.
During the joint venture, GIC will acquire a 95 percent stake in the property, while Charter Hall will acquire 5 percent.
The building, which spans about 40,000 square feet of office space, is fully leased by the federal government’s Department of Education, Skills and Employment.
Kishore Gotety, co-head of real estate at GIC, said Canberra’s stable office market made the acquisition a strong investment.
“The Canberra market has performed well under COVID-19 with continued macroeconomic growth and low office turnover,” he said in a statement.
“Going forward, we expect stable office demand, supported by healthy employment growth and government demand.”
He added that the company would leverage Charter Hall’s “strong leasing capacity” to add additional value to the investment.
The transaction follows the release of new data from the Property Council of Australia showing a modest increase in ACT workers returning to the office since the COVID-19 lockdown ended.
The November survey among office owners in the area showed that the occupancy rate rose from 7 to 17 percent.
Meanwhile, Canberra’s vacancy in the office, calculated on whether there is a lease in place for an office space, was among the healthiest in the country at 7.7 percent in August.
Adina Cirson, ACT CEO at the Property Council of Australia, said the $ 335 million acquisition shows “great strength of confidence” in Canberra’s office market.
“50 percent of our office market is leased by the Commonwealth, and that gives us a lot of strength when it comes to real estate security,” she said.
“Consistently having someone like Charter Hall to invest in Canberra will really send a strong message to other investors around the country and abroad.
“So it’s really positive and matches with confidence that we’re starting to see the return to the real estate sector here in Canberra.”
Michael Andrews of CBRE, who led the sales campaign, said investment activity in Canberra’s office market was set to break records in 2021.
“[Canberra is] “currently tracks $ 1.17 billion in total office sales, which has completely exceeded the annual average of $ 375 million, with an additional $ 300 million in sales in the pipeline,” he said.
Among this year’s major office transactions was the Louisa Lawson building at 25 Cowlishaw Street in Tuggeranong, which was sold for $ 306 million, CoreLogic data shows.
In September, Lendlease sold 25 Constitution Avenue in Canberra City to Real Asset Management for $ 115.1 million.
Our journalists work hard to deliver local, up-to-date news to the community. Here’s how you can continue to access our trusted content:
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