19 October 2021

ActewAGL House in CBD tipped for $80 million-plus sale

| Ian Bushnell
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ActewAGL House

ActewAGL House: A modern A-grade building on a prime corner site. Photo: Colliers International.

One of Canberra’s most prominent CBD properties is on the market and is expected to fetch more than $80 million.

ActewAGL House at 40 Bunda Street is a seven-storey A-Grade office building boasting net lettable area of 8080 square metres on a large 1431 square metre corner site.

Completed in 2009, the building is fully occupied by the ACT energy company, which recently extended its lease to 2029.

It offers ground floor retail, six levels of office accommodation, two basement levels providing 85 car spaces, and end of trip facilities and bicycle storage.

The building has a high energy efficiency rating of 5.5-star NABERS Energy Base Building rating, and chilled-beam HVAC on levels one to five.

With a secure quality tenant, net income is estimated at $4,928,483 excluding GST, and an average lease period (WALE) of eight years.

Owner Event Hospitality and Entertainment is selling at a time of high demand for quality Canberra assets.

It said the sale was “part of our strategy to divest non-core property assets to unlock value in the group’s property portfolio, to reinvest in future development opportunities”.

Colliers International and JLL are marketing the property.

Colliers director, capital markets and investment services Matthew Winter said there was a strong mix of domestic and international interest for the property.

Mr Winter said it was a modern A-grade office building underpinned by a top-tier income stream in ActewAGL, which would provide long-term cash flow in one of the CBD’s best-positioned buildings.

He said it was one of several major office assets currently on the market.

So far this year, there had been more than $1 billion in major office sales, Mr Winter said, a record for the ACT commercial market. Major sales are assets worth more than $10 million.

“We are seeing historically high levels of demand for all Canberra opportunities, but particularly those that offer long-term income security such as 40 Bunda Street,” he said.

“Canberra has outperformed other national markets through a turbulent 18 months and has proven to be a resilient destination for investors.”

The property is being sold through an expression of interest process, which closes on 28 October.

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Capital Retro10:14 pm 19 Oct 21

With the main activities of Event Hospitality and Entertainment being Cinema exhibition operations in Australia & New Zealand including technology equipment supply and servicing, and the State Theatre, Cinema exhibition operations in Germany; ownership, operation and management of hotels and resorts in Australia and overseas; operation of the Thredbo resort including property development activities, property development, investment properties, and investment in shares in listed and unlisted companies, they would have been badly impacted by the COVID 19 pandemic.

To their credit, they have become diversified enough to do exactly what they have stated the reason for selling is. Many other companies also impacted by the COVID 19 pandemic won’t have these choices.

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