70 Bunda Street, Canberra City sold for $13.35 million
Garema Centre, 70 Bunda Street in Canberra has been purchased by Geocon for $13.35 million after a hotly contested Expressions of Interest campaign. Matthew Winter, Manager at Colliers International said the campaign attracted strong interest, recording the highest level of enquiry for a Colliers International listed building so far this year.
Garema Centre is a standalone retail building, on a large rectangular site of 1,052sqm with very wide street frontage to Bunda Street and Garema Place. The site is zoned CZ1 which may allow additional uses such as residential or hotel, subject to approvals.
“Enquiries for 70 Bunda Street far exceeded that of 50 Bunda Street, with a more diverse group looking to secure the asset.
“Unlike many assets offered for sale this year, the flexibility of the 70 Bunda Street site made it an attractive option to a very broad range of buyers. We saw significant interest from developers, investors, student accommodation providers, owner-occupiers and hoteliers,” he said.
The campaign attracted buyers from Canberra, Sydney, Brisbane and Melbourne.
Matthew said, “The number of enquiries from interstate buyers shows the strength of the Canberra market and confidence interstate buyers have in Canberra’s fundamentals.
“We saw significant enquiry from hoteliers, and it is not surprising considering the strength of the Canberra hotel market. Canberra hotels were the best performing in the country, with RevPAR up 12.8 percent, compared to Australia-wide which saw an increase of just 2 percent, June year-to-date.”
Local developer Geocon is looking to deliver an international standard hotel, brining a new hotel brand to the nation’s capital. World-renowned architects Fender Katsalidis will be working on the project.
Works are expected to commence in 2019 and with first guests being welcomed in 2020.
Matthew Winter sold 50 Bunda Street for $9.8 million in June, showing a 6.67 percent net yield. Comparatively, Garema Centre showed a net yield of 2.9 percent based on the passing income. According to Matthew, Colliers International received several offers above market expectations.
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