Latest major office building offered for sale in Canberra
AMA House, 42 Macquarie Street in Barton is the most recent asset to hit the market for sale. The building presents a strong investment opportunity and is expected to attract interest from offshore private investors, institutional investors and high net worth privates. Colliers International are the appointed selling agents.
Matthew Winter, Manager at Colliers International said, “AMA House has a diversified income featuring strong value-add potential. The opportunity coincides with favourable forecast leasing conditions for the Canberra office market, which combined with an encouraging renewal outlook provide excellent grounds for strong financial performance of AMA House over the short to medium term”.
Completed in 1990, AMA House is a modern four level, high quality B Grade office building with 4,053 sqm of net lettable area and 110 car spaces. It has a 3-star NABERS Energy rating.
Over the past five years, approximately $4 million has been invested into the building, with several large scale capital expenditure projects being completed, including the central plant upgrade in 2014 and refurbishment of service areas, bathrooms and foyer in 2015/2016.
“AMA House offers investors an asset with staggered tenant expiry profile with major leases expiring in 2020 and 2022. There are strong opportunities for income and WALE enhancement,” said Matthew.
The fundamentals for investing in Canberra real estate have continued to improve over the past 12 months and have been enhanced by the increased desire for foreign investors to invest in Canberra.
“Australia’s positioning within the Asian economy remains crucial in continuing to attract new foreign investors from every corner of the globe. Direct flights from Singapore to Canberra since September last year has increased accessibility to the market and is evident in transactions completed in the first half of 2017.
“The pickup in leasing conditions this year has instilled investor confidence in the Canberra office market which is expected to continue into 2018 and result in further major sale transactions over the coming months,” said Matthew.
Tenant demand for A Grade options in the Parliamentary precinct is extremely tight with the Property Council of Australia reporting A Grade vacancy at 0.01 percent as at July 2017. Colliers International expects this to put further pressure on B Grade stock with vacancies expected to tighten.
Matthew says strong leasing activity has been driven by the movement of several large private occupiers and Government tenants since the 2016 Federal Election.
Expressions of Interest campaign closes Thursday 19 October 2017 at 4pm.
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