Colliers International to auction 100% leased asset.
Hyperion Property Group has appointed Colliers International to sell 165 Canberra Avenue in Fyshwick, after fully-leasing the asset to Seeing Machines for a 10-year term plus option.
Seeing Machines is a Canberra start-up and now global organisation listed on the AIM of the London Stock Exchange and currently employ just under 200 people in Canberra.
Seeing Machines is a world-leader in the development of computer vision related technologies that help machines understand people tracking and interpreting human faces and eyes.
165 Canberra Avenue is a high quality and well-maintained standalone building that has recently undergone cosmetic upgrades, and future tenant works are estimated at approximately $4 million. Seeing Machines appointed Canberra-based interior design studio, Core Interiors, to design their fitout.
Matthew Winter, Manager at Colliers International said, “The property is situated on a land-rich and high-profile 5,256 sqm corner site along a major transport corridor in Canberra’s Inner South, and presents purchasers with an outstanding long-term proposition.”
165 Canberra Avenue is a prominent and modern two level building constructed in 1994, purpose-built for a technology company. The building is surrounded by a mix of office, residential and retail accommodation, with major facilities such as the Fyshwick Fresh Food Markets, Canberra Outlet Centre, Kingston Foreshore and Manuka Shopping precinct all being within a 3km radius.
“The property lies within the East Lake Precinct which is currently under investigation by the ACT Government for future re-zoning to encourage urban infill via residential development,” said Matthew.
According to Colliers International, strong sales activity in the last quarter of 2016 has continued throughout 2017 with a significant volume of sales completed and currently under offer. There has been an increase in demand from privates and syndicates as they become more comfortable with local market conditions. Macro-economic influences over the last two years have also been favourable to borrowers which has further enhanced foreign buyers’ appetite.
Matthew said, “Interest rates are presently sitting at a record low of 1.5 percent which is expected to encourage further investment into the property market as investors seek higher returns outside of traditional government bonds and the share market.
“Competition for assets in the ACT has become more intense as shortage of stock in the Eastern Seaboard intensifies and yield compression continues to occur, particularly when coupled to the relative safety of the Canberra economy, which is underpinned by the Commonwealth Government.
“Canberra has firmed as a proxy for Metropolitan Sydney and Melbourne and this overflow demand for Canberra has drawn strong competition for assets similar to 165 Canberra Avenue, particularly given the attractive yields relative to comparable assets in metro markets, secure tenant profiles and investment package size’, said Matthew.
165 Canberra Avenue is being auctioned on Thursday 26 October.