Cromwell Property Group is moving forward with a 19,800sq m office building in Canberra after signing a lease agreement with a Commonwealth government department for the asset.
The six-storey facility is to rise within the Parliamentary precinct at Barton.
It will be 100 per cent occupied by a Commonwealth department under a 15-year lease arrangement with a five-year extension option.
The building will bring several Commonwealth department offices currently spread across locations in the national capital into one central facility near Parliament House.
Government documents from September of last year show the Department of Foreign Affairs and Trade (DFAT) sought approval for an $85.45-million fit-out at the same address to consolidate its current four Canberra properties and accommodate approximately 1500 staff by October of 2026.
According to the government documents, DFAT currently leases properties at 44 Sydney Avenue, 51 Allara Street, and 255 London Circuit, totalling 20,492sq m, with three leases expiring in 2026 and 2027.
The project at 19 National Circuit, first announced in 2020, would be led by Cromwell’s in-house development team and initially funded by the property group.
Ground level features include green spaces creating an entrance with a porte-cochere and retail cafe.
Designed to achieve 6-star NABERS Energy and 6-star Green Star ratings, the building would provide 249 secure basement parking spaces and end-of-trip facilities including 136 bicycle spaces and 18 showers.
According to architects nettletontribe, the building is “a commitment to innovative and thoughtful architectural design meant to enrich professional life with modern convenience”.
Demolition of the former Australian Labor Party headquarters at the site began in 2021. The project was initially targeted for completion in mid-to-late 2024 before timelines were extended.
Construction began in February of 2025. DFAT documents show the department wants to move in by October of 2026, with lease commencement planned for the first of that month.
Planning documents indicate the building will comply with Protective Security Policy Framework requirements, addressing security concerns with DFAT’s current outdated facilities.
Cromwell chief executive Jonathan Callaghan said “while broader market conditions have made new developments challenging, this project stands out as a compelling opportunity and is a strategic step forward after the completion of our business simplification process”.
Cromwell described the project as providing long-term income stability through its lease arrangement with the AAA-rated government tenant while supporting its transition to a capital-light investment management model.
The company expects the development to drive strong returns.
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The announcement coincided with news that Cromwell had renegotiated its bilateral debt facilities following completion of the sale of its European platform.
The refinancing resulted in a decrease in the company’s weighted average drawn credit margin from 1.77 per cent to 1.31 per cent, supported by the group’s significantly reduced net debt and gearing position.
This consolidation follows a broader trend of Commonwealth agencies streamlining their Canberra office arrangements to “reduce costs and improve operational efficiency by having staff in one location rather than scattered across multiple leased premises”.
The Australian Taxation Office moved from multiple Civic locations to a single new building at Barton in 2025 under a 15-year lease, while the Department of Education and Department of Workplace Relations will consolidate into a single 11-storey building at Civic by mid-2026.
The education department’s move, for example, will consolidate five separate leases covering 75,000sq m of office space across Canberra.
