One of Canberra’s most recognisable office buildings comes to market
One of Canberra’s most recognisable office buildings has come to market backed by a long-term lease to the Australian Federal Police, and the landmark Edmund Barton Building is expected to attract strong interest from investors.
Developed in the 1970s as part of the capital’s growing parliamentary and administrative precinct, the building has long been embedded in Canberra’s federal government landscape and today houses critical AFP infrastructure, including the National Operations Centre.
It has been brought to market by Germany-based fund manager Real I.S. Australia following a successful Commonwealth lease extension, represented by the AFP, with a weighted average lease expiry of around 13 years and fixed annual rental reviews of 3.5 per cent, generating a net passing income of about $20.5 million a year.
With about 44,089 square metres of net lettable area across a 26,474-square-metre landholding, the asset is considered one of the larger institutional-grade office holdings in Canberra’s tightly held Barton precinct.
The campaign is being handled by JLL managing director and head of capital markets ACT Tim Mutton, alongside Knight Frank partner Jonathan Vaughan.
“Opportunities of this nature are exceptionally rare, combining institutional scale with a long-dated government lease and sovereign-backed income,” Mutton says.
“In a market where investors are increasingly focused on certainty of cashflow, this asset offers a level of income security and duration that is difficult to replicate.”
Positioned close to Parliament House and surrounded by major federal government departments, the building sits in one of the city’s tightest office leasing markets.
Vaughan says both domestic and offshore investors are targeting assets with secure income profiles amid broader economic uncertainty.
“We are seeing strong demand from both domestic and offshore capital for assets that provide long-term income visibility, particularly those underpinned by government covenants,” he says.
“Assets of this scale in Barton are extremely tightly held, and with limited supply and high barriers to entry, we expect this opportunity to resonate strongly with investors seeking defensive, core exposure in Australia.”
Real I.S. Australia managing director Desiree Buhler says the property has delivered strong and consistent performance during its 15 years in the group’s Australian portfolio.
“This divestment follows the successful lease extension managed by our local AM team, and we are confident the asset will appeal to investors seeking secure income with strong underlying fundamentals in one of Australia’s most important government precincts,” Buhler says.
The asset is being offered for sale via an international expressions-of-interest campaign, closing on June 18.
