The Woden Centre is perfectly positioned and offers long-term re-development prospects. Photo: Supplied/
The Woden Centre, a four-level building adjacent to the Woden bus interchange and shopping centre that was also known as the Churches Centre, has been purchased by the Uniting Church for $8.155 million.
Colliers International’s Associate Director City and Metro Sales, Matthew Winter said the 1946.5 square metre building was placed on the market in early August by Woden Square Pty Ltd, a company associated with the Cataldo Group.
“It drew strong interest thanks to its location adjacent to Westfield Woden and fronting the bus interchange, 100 per cent occupancy and 3.11-year WALE [weighted average lease expiry],” he said.
“In a lovely twist of fate, this building which for much of its life has been known as the Churches Centre, was secured by the Uniting Church of Australia.”
The recently refurbished building has a diversified tenancy profile including national businesses Aussie Home Loans, Red Cross, IMB, and Workways.
“During 2018, Canberra has had limited on-market opportunities, yet it is a market in demand, particularly around our town centres,” Mr Winter said.
“Woden is particularly popular as it is undergoing gentrification and there are significant residential developments coming online which will bring increased activity to the area. Therefore, we were not surprised this sale generated enquiry from across Australia. Much of the interest we saw was from interstate, although a mix of local privates and developers also participated.”
Mr Winter said the Woden Centre offered its new owners an initial yield of 7.62 per cent, but presented further opportunities for the new owner to add value.
There might also be long-term re-development prospects given the building’s triple street frontage, CZ1 Zoning and rectangular-shaped 732 square metre site area.
“Overall this was a strong result which confirms ongoing confidence in Canberra despite the tight lending criteria from banks and some uncertainty in the macroeconomic environment,” Mr Winter said.
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