Growthpoint Properties Australia (Growthpoint) is pleased to announce that its new fund, the Growthpoint Canberra Office Trust, has entered into a binding agreement with ISPT to purchase a prime office building in Canberra’s CBD for $90.05 million.
Located at 2 Constitution Avenue, Canberra, ACT, the property is in a prime position, surrounded by key amenities. Comprising 19,465 square metres of lettable area across two towers, the property is approximately 96% occupied by area, with 88% passing income secured by Government and Government affiliated tenants.
The syndicate investment structure is widely held amongst our private wealth investor network and forecasting average 9% annualised distributions and a forecast internal rate of return range of 15-16%1.
Funds Management Executive Director, Sam Sproats, said “We are pleased to have secured this counter-cyclical office investment opportunity, with a clear strategy to drive income and enhance asset value via Building Electrification and the Net Zero strategy.
“We believe acquiring at $4,620 per square metre represents deep value buying, with replacement cost approximately 80% above the purchase price.”
Ross Lees, Growthpoint’s CEO & Managing Director, said, “Canberra’s CBD vacancy is at 9.5%, one of the lowest in the Australian office market, and anticipated growth in Government staffing levels of approximately 9% in 2024-2025 is expected to support demand for this asset.”
“The Growthpoint Canberra Office Trust represents progress in our strategy of growing our funds management business, leveraging our management expertise to create attractive investment opportunities for our syndicate investors” Mr Lees added.
Settlement of the property is expected early in the 2025 calendar year.
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