ACT Health headquarters in Woden sold for $84.6 million

Ian Bushnell 29 December 2021 12
2-6 Bowes Street, Woden.

2-6 Bowes Street in Woden is home to ACT Health. Photo: CBRE.

The building that houses ACT Health’s headquarters in Woden has changed hands for $84.6 million, underscoring the strength of Canberra’s office market and the attraction of the growing Town Centre.

ASX-listed real estate investment trust Growthpoint has acquired the six-storey office building at 2-6 Bowes Street from private equity investment group Altis Property, which had held the property for four years.

Altis had paid Quintessential Equity $58.4 million for the 4366 square metre site. Quintessential picked it up for $14 million in 2012, then undertook a $10 million refurbishment and rented nearly 90 per cent of the property to ACT Health.

The property was developed in 1986 and has 12,376 square metres of lettable area across three interconnected buildings, and 86 basement car parks.

ACT Health has 9.2 years left to run on its lease, at which time it will be presented with the first of two five-year options.

READ ALSO: Fyshwick Fresh Food Markets sells for ‘well above’ $60 million price guide

The Federal Government, including its COVID response team, occupies 940 square metres (or 7.6 per cent).

Colliers International Director of Capital Markets & Investment Services, Matthew Winter said Woden’s reputation as a national health hub and the strong development outlook in the Town Centre contributed to the result.

“The acquisition of 2-6 Bowes, and also (the sale of) Scarborough House (for $83m) earlier this year, demonstrates the confidence in the Woden market and its ongoing evolution,” he said.

“The compelling infrastructure story is providing a positive long-term outlook for the precinct.”

Mr Winter said key infrastructure such as the Canberra Hospital, Westfield, future CIT campus and major occupants including Department of Health, and ACT Government underpinned the area.

“The commitment by ACT Government to major infrastructure projects to enhance Woden as well as private sector development is providing a compelling investment proposition,” he said.

Mr Winter said the sale campaign attracted strong domestic and international interest given the quality of the asset and income profile.

“The ACT office market has seen record levels of buyer participation and sales volume in 2021,” he said.

“As at July 2021 the ACT had the lowest total vacancy levels of any major Australian office market (7.7 per cent). Vacancy levels for A-grade office assets are approaching historical lows across the entire ACT market.”

Mr Winter said the Woden A-grade market had been one of the most stable across the ACT.

Growthpoint now holds $261 million in Canberra property. Mr Winter said the company had been a long-term Canberra owner and this recent acquisition highlighted its ongoing confidence in the market.

Colliers and CBRE brokered the sale.

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12 Responses to ACT Health headquarters in Woden sold for $84.6 million
realist realist 3:19 pm 13 Jan 22

So I can only assume that i

I can only assume that these funds will go back into our very unhealthy health system. Sorry Jason I am joking. Yes Paul, think you are right – funds will go to Andrews toy trains

Paul Mathews Paul Mathews 10:42 pm 01 Jan 22

haha to pay for the new toy trams instead of doing anything about SERVICES eh Chris

    Ashley Wright Ashley Wright 10:02 am 02 Jan 22

    Paul Mathews how do you work that out? It might may to read and comprehend the article.

Jennifer Close Jennifer Close 7:30 pm 01 Jan 22

I can remember my late mother born 1921 saying certain hospitals in nsw were contaminated with Golden Staff.

Mum only died in March 2021. I had a few attempts at trying to explain Covid but appart from Spanish Flue and it was really our father Jack that was into Current Affairs. Dad died 2014 age 91 he was still reading and understanding the Sydney paper up to 2 weeks before his death.

Jennifer Close Jennifer Close 7:25 pm 01 Jan 22

Is not the majority of ACT Leasehold title Anyway?

Kimberley Lloyd Kimberley Lloyd 5:42 pm 01 Jan 22

The same employees will be there they would be just in tiny apartments but they have to pay for them selves.

    Ashley Wright Ashley Wright 10:04 am 02 Jan 22

    Kimberley Lloyd of course they will still be there. As per the article ACT health still has 9 years left on the lease and two 5 year extensions. All that is has change is one private owner has sold the building to another private owner!

    Kimberley Lloyd Kimberley Lloyd 11:31 am 02 Jan 22

    Ashley Wright Everyone is working from home and probably will continue. Office spaces will become apartment spaces as you’ve seen the Woden landscape change. People in those apartments will need employment that will work for the same departments that occupied the same space it was a very generalized comment that I made but you can clearly see the changes in housing in Canberra.

Jason Preston Jason Preston 6:11 am 01 Jan 22

Well health is broke so that’s a nice bit of income

    Tim Williams Tim Williams 8:49 am 01 Jan 22

    Jason Preston guessing you didn’t read the article?

    ACT Health lease the building. They didn’t own it

    Jason Preston Jason Preston 8:50 am 01 Jan 22

    Tim Williams

    Well whoever

    Just made a load of money 💴

    Jason Preston Jason Preston 8:50 am 01 Jan 22

    Tim Williams besides

    Health is still broke anyway

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