Six high profile Canberra assets to hit the market in February.
Colliers International and Raine & Horne Commercial have been appointed to sell the Petros Group Portfolio (PGP). The portfolio consists of six high profile and diverse commercial assets spread across Canberra and are being offered for sale in one line or individually in February this year.
The portfolio includes the AXS Business Centre in Fyshwick, 34 and 36 Mort Street in Braddon, Units 1 and 2 of 56 Hoskins Street and 23-41 Lysaght Street in Mitchell.
Following Canberra’s strong sales results in 2016, combined with the National Capital’s strong fundamentals and low interest rate environment, the sales agents are expecting significant interest from local, national and international investors.
According to Matthew Winter, Sales Executive at Colliers International, the portfolio offers a secure income stream supported by 20 tenants, including the Department of Defence (33 per cent of portfolio income) and a staggered lease expiry profile.
“The nature of income across the portfolio provides a diversified cash flow and gives investors the ability to potentially enhance levered returns through the portfolio or individual asset gearing. Opportunities exist to immediately enhance the income of numerous assets by leasing current vacancies and extending leases at market levels”, said Mr Winter.
“Whether investors are looking at buying in one line or individually, each asset presents a different value-add proposition. Each property has strong underlying fundamentals. They are located in prominent commercial locations, have been well-maintained and are of high quality.
“Some assets also offer redevelopment and subdivision opportunities which is likely to attract developers, such as the 34 and 36 Mort Street Braddon and AXS Business Centre in Fyshwick.
“The Braddon sites will be of particular interest to developers. The neighbouring sites are located on one of the most prominent corners of the suburb and developers are likely to try to acquire both sites to maximise GFA.
“The strength of these properties on an individual basis make them attractive on their own and may offer multiple exit options for portfolio buyers in the future,” he said.
“Although this portfolio is likely to draw interest from institutional investors, it is a good opportunity for private investors to acquire some individual assets. For example, 23-41 Lysaght Street in Mitchell is an asset that private investors could potentially park in their Superannuation Fund and the asset is relatively easy to manage.”
Expressions of Interest close at the end of March.