2-6 Shea Street Phillip forms part of the Capital Business Park commercial precinct developed throughout 2009 –2010 on the fringe of the Woden Town Centre. The freestanding 4,776m² office asset sits on a commanding 4,486m² site with basement car parking for 98 vehicles. Offered for sale for the first time since construction, the asset is underpinned by the Commonwealth (51% of NLA) and a variety of private sector tenants with a 3-year WALE.
|• $18.75m sale price||• 5.43% initial yield|
|• 3-year WALE||• $3,925/m²|
|• Multi-tenant metro office|
After being marketed by another agency (off-market) during 2020, 2-6 Shea Street remained an unsold metro Middle Markets asset featuring a mix of Commonwealth and private sector tenants with 3+ year WALE and ~25% vacancy. Purchasers previously introduced to the asset had either not completed or were well off Vendor expectations.
The Colliers team was introduced to the private vendor in late 2020 and were advised a quick result was sought, but at strong pricing metrics.
Having completed a successful campaign for another Middle Markets asset (which attracted 19 bidders) Colliers had live buyer intelligence and over $100m worth of unplaced capital to introduce the asset to. Furthermore, with the competitive tension and pricing achieved on the previous asset, our team leveraged this on behalf of our new client.
Within a week of meeting the Vendor, a qualified purchaser had inspected the asset and formalised an offer for sale, completing the transaction in just over a month from Colliers engagement.
- The sale price of $18.75m reflected an initial yield of 5.43% and capital value of $3,925/m².
- The building featured 4 tenants (including Australian Government for 51% of NLA) and approximately 25% vacancy.
- The property was sold to an interstate private purchaser who was an underbidder on another Colliers Middle Markets asset in 2020.
- The sale did not include any rental guarantees or adjustments, which had been requested by previous parties.
- The off-market sale was the first major middle markets transaction for 2021.
"We were extremely pleased with the speedy result and overall outcome that Matthew Winter achieved for us"
Capital Holdings Group