Aviation House in Woden has been sold to a private investor from Queensland for $68.1 million, making it the largest office building sale in the Canberra market this year. Tim Mutton, National Director of Capital Markets at Colliers International brokered the sale.
Aviation House was sold via an EOI process in conjunction with JLL and received interest from international and local buyers seeking to invest in Metropolitan Markets across the eastern seaboard
Mr Mutton said, “Similar to what we saw with the sale of Louisa Lawson building last year, Canberra is attracting maiden investors who are finding that supply is becoming increasingly scarce in the Sydney and Melbourne major office markets.
“Major office buildings with Commonwealth leases located in our town centres are seen as attractive investments as the Australian Government considers local impacts before moving tenants out of town centre locations, which we’ve recently seen with Customs and Border Protection staying in Belconnen.”
Mr Mutton said Aviation House represented another strong sale in a Canberra town centre and is great news for businesses in the Woden area, being one of Canberra’s major community and commercial hubs servicing a retail trade area of about 432,000 people and with some 130,000sq m of office space occupied by Government tenants.
Woden is an evolving precinct with a number of initiatives and private developments already underway or being planned, such as major extensions and redesign of the nearby Westfield Woden Shopping Centre.
The ACT Government has also undertaken a number of infrastructure projects in Woden including the investment of more than $10 million on improving the Bus Interchange and street scapes.
Aviation House is an A-Grade office building comprising 14,812sq m of high quality office accommodation over nine levels, boasting a WALE of five years. It is a fully leased commercial asset underpinned by three Commonwealth Government tenants. Settlement is expected in June 2016.
According to Colliers International research, four major office buildings have sold in 2016 totalling $152.325 million. Tim Mutton expects four more major office buildings to transact before the end of the year.