The Australian Institute of Health and Welfare (AIHW) headquarters in Bruce has been sold to KM Property Funds, a division of the KordaMentha advisory and investment firm, for $39.3 million.
The Commonwealth Government tenanted property at 1 Thynne Street is a high-quality, 100 per cent occupied, purpose-built 5848 square-metre office building with a six-star NABERS energy rating.
Colliers International director of capital markets and investment services, Matthew Winter, said the off-market sale reflected the strength of the Canberra office market and the stability it offered to investors during difficult times.
AIHW is a long-term tenant whose lease does not expire until June 2029.
“There has been strong interest in this property because all the fundamentals are in place,” said Mr Winter.
“The total site area is 9578 square metres, which allows for the provision of 208 car parks in its current configuration. However, it has mixed-use zoning which would permit additional future uses.
“Fixed annual rent reviews of three per cent per annum provides strong income growth.”
Close to the Belconnen Town Centre and a short walk to the University of Canberra, the property is also relatively new, built by respected building firm BLOC only six years ago.
Mr Winter said the sale showed that the Canberra market continues to appeal to investors seeking stability through long-term investments underpinned by secure tenancies with attractive rents.
Mario Papaleo, managing Director of KM Property Funds, said his firm sought out properties with quality tenants and ”AIHW is an exceptionally important organisation for the Australian community, both in the short and long term”.
“We understand that these are volatile and uncertain times, but we are pleased to bring a reliable investment opportunity to investors seeking a high degree of income certainty in their investment portfolio,” he said.