8 March 2021

Phillip office building sells for $18.75 million as town centre interest grows

| Ian Bushnell
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Phillip building

The Phillip building is in a strategic long-term location with generous parking, a large site area, and an attractive tenant mix. Photos: Ian Bushnell.

A modern A-grade office building in Phillip has sold off-market for $18.75 million, reflecting interest in non-CBD properties and intense demand for investment opportunities in the ACT.

The 4,776 square metre net lettable area (NLA) Capital Centre is part of the Capital Business Park precinct which was developed throughout 2009-10.

It sold after an unsolicited off-market approach to the developer/owner Capital Holdings from a private Sydney family. It is the first time the property has changed hands since it was built.

Colliers’ director of capital markets and investment services Matthew Winter said the final result was reflective of the interest being shown in the ACT’s commercial precincts and town centres.

“Properties in areas like Woden and Fyshwick have been amongst the first to come onto the market this year, and with all the fundamentals in place in Canberra, we are experiencing intense demand for investment opportunities in the ACT,” he said.

Commonwealth Government tenants

Commonwealth Government tenants are locked in until 2027.

Mr Winter said the property was a modern building in a strategic long-term location with generous parking, a large site area, and an attractive tenant mix.

“With over half of the passing income secured by the Commonwealth Government until 2027, and the property having a strong history of occupation by government and private tenants, it offered an attractive investment opportunity,” he said.

Mr Winter said that during 2020 there were unprecedented levels of enquiry from domestic and offshore sources seeking top-tier, long-lease investments in Canberra, with Colliers sourcing more than $1.8 billion in qualified buyer mandates.

“These ‘ready’ buyers will generate significant competition for properties released to the market in 2021,” he said.

Mr Winter said tenants showed a preference for quality offices, buildings that include end-of-trip facilities, amenities and can cater to more flexible working environments.

“Astute buildings owners have looked to refurbish assets where possible to modernise and satisfy the needs of tenants in order to remain competitive,” he said.

Government tenants also required a minimum NABERS rating, measuring its energy efficiency and environmental performance, for their buildings, he said.

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