Credit Suisse-owned building for sale in Canberra CBD
62 Northbourne Avenue is listed with CBRE. Photo: Supplied

Credit Suisse-owned building for sale in Canberra CBD

CBRE has been appointed to sell a prominent Canberra office building on behalf of Credit Suisse Real Estate Investment Management.

A-grade asset 62 Northbourne Avenue, a seven-storey building fully leased to the federal government, is for sale by expressions of interest.

Credit Suisse bought the tower for $38 million in 2009 and is reportedly looking to sell the building for close to $60 million.

CBRE’s Mark Hansen, Andrew Stewart and Richard Butler are handling the campaign.

Mr Stewart said the sale was likely to be hotly contested following a tightening in Canberra’s vacancy rate and value-adding infrastructure projects.

“With the federal government having gone through a period of consolidation of its existing leasing portfolio, which it has now stabilised, vacancy rates for A-grade stock in Canberra’s CBD have dropped to below 5 per cent based upon the PCA’s latest market outlook,” Mr Stewart said.

“This is a significant asset in the Canberra market and very well located in the main north and south corridor, with excellent access to the city retail precinct, and immediately adjacent to the proposed light rail project.”

Mr Hansen said investors had begun gravitating toward Canberra’s office stock due to its “safe haven” status.

“Canberra is a classic, safe-haven investment which has always attracted offshore money,” he said.

“Because of the stability of tenure, fixed reviews and long-term leases that the Commonwealth government provides, we expect this property to attract the interest of a number of investors seeking security of this type in the current economic climate.”

The 62 Northbourne Avenue building has a 5-star NABERS rating and 109 basement car spaces.

A 2007 upgrade saw improvements to its chillers, boilers and BMS systems, along with the installation of T5 lighting throughout.

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