Biggest office sale in Canberra this year at $151.7 million
UK-based Brompton Asset Management has acquired the Industry House building in the Canberra CBD for $151.7 million, in what is being billed as the biggest office transaction in the nation's capital city this year.
The 15-storey building, at 10 Binara Street, was owned by The Andrew Roberts-backed property funds management group CorVal and sold on a yield of 7.5 per cent. CorVal bought the A-grade building for $123 million in 2009.
The acquisition, negotiated by Jones Lang LaSalle agents Rob Sewell, Simon Storry and Greg Lyons, is the second purchase in Canberra market by Brompton. The asset manager also owns a nearby office building at 255 London Circuit.
"Sovereign wealth funds and global pension funds have re-rated real estate, placing a higher weighting on the defensive characteristics of the asset classes and increasing allocations to the sector," said Mr Sewell.
"The most passive of offshore capital is seeking modern assets, strong covenants, long lease terms ( with stipulated fixed increases) and increasingly the latest in sustainability credentials".
Jones Lang LaSalle research shows that Canberra is the youngest Australian CBD office market, with 40 per cent of assets aged less than 10 years. "The quality of income in Canberra is high, with 60 per cent of office space occupied by the AAA-rated Federal or ACT governments," Sewell said.
