Canberra's Garema Court office building on the market for about $75 million
One of Canberra’s best-known office buildings is being put up for sale after two decades, and is tipped to fetch about $75 million.
The seven-level Garema Court building on Garema Place, in Civic, is owned by office landlord Dexus and if sold at that level would be one of the most expensive office assets to change hands in the city this year.
Other office buildings in Civic sold this year include 16-18 Mort Street ($108.5 million); 14 Moore Street ($59 million); a 50 per cent interest in 121 Marcus Clarke Street ($102.9 million); and 19 Moore Street ($35 million).
The A-grade building was last on the market 20 years ago and is regarded as one of the national capital’s most recognisable buildings.
It features almost 11,000 square metres of office space, a modern entrance foyer with high ceiling and cafe. Each level has large floor plates with full-height windows that maximise natural light, there is a wraparound outdoor terrace on an upper level and the building has a 5.5 Nabers rating.
It occupies a prominent position on City Walk opposite the Canberra Centre, which is host to a number of big-name retailers including Myer and David Jones.
Restaurants, bars and cafes with indoor and outdoor dining are located nearby, and cultural and entertainment options are available at Civic Square, Canberra Museum & Gallery and Jigsaw Theatre Company.
Garema Court fronts onto Garema Place, a popular meeting spot between the Canberra Centre, bus interchange, light rail and City Walk (another main work, shopping and increasingly residential precinct).
Infrastructure investment in the ACT is budgeted at $3 billion over the next four years, primarily in transport, health and education sectors.
However, new retailers, including luxury retailers, are continuing to establish presences in the Canberra Centre in a CBD revival that also will also include a new 200-room hotel by Geocon.
Garema Court is right in the heart of this growing hub.
Colliers International state chief executive Paul Powderly said potential buyers would be attracted by the building’s high-quality tenant and Canberra’s exceptionally low A-grade vacancy rate, presently 1.7 per cent in the CBD.
“The property has an office NLA of almost 10,821 square metres across its seven levels and is 100 per cent occupied by the Commonwealth government, a AAA-credit-rated tenant,” he said.
“The current lease does not expire for another four and a half years and there are a number of value-enhancing opportunities to explore.”
Colliers International associate director Matthew Winter said tenants were focusing on quality accommodation with access to amenity being a paramount consideration.
“Garema Court is in a prime position, surrounded by stores, places to eat, banks, gyms and health facilities as well as the new ACT light rail stage-1 terminus and bus interchange,” he said.
“These are all positives for long-term tenant retention and demand for space in the building.
“It’s a sound investment for a new owner and also comes with fixed rental increases of 4 per cent per annum.”
Garema Court is being sold via an international expressions-of-interest process that closes on November 14.
