Nation’s capital raising the bar as investors seek out Moore stability
07 March 2019
Diversified commercial property group Quintessential Equity today announced it is selling 10 Moore Street in the heart of Canberra’s CBD, offering buyers an opportunity for secure cashflow underpinned by a strong, diverse mix of committed long-term tenants.
Russell Bullen, Quintessential Equity Chief Executive Officer, said the 6,709sqm building was a top-tier office investment with a diverse list of quality tenants, led by long-term major tenant Optus, and with minimal capital expenditure requirements.
“Importantly, the property has a Weighted Average Lease Expiry of 4.5 years by income, 14 current occupants and income diversified across various industry types, with all leases benefitting from fixed annual rental increases,” said Mr. Bullen.
Positioned on a high-profile, corner site in the heart of Canberra’s thriving CBD, we have transformed the property through a full base-building regeneration, extensive cosmetic refurbishment and the achievement of a 5-star NABERS Base Building Energy rating, positioning the property for strong performance in the future.
10 Moore Street is strategically located to benefit from significant infrastructure projects in the immediate area, while large frontages provide excellent natural light and exposure for tenants.
“Flexible floorplates of approx. 1,300sqm allow amalgamation to accommodate large tenant or Government requirements, while the large 1,554sqm site also provides possible long-term redevelopment prospects, subject to approval,” he said.
Colliers International and JLL are the selling agents.
Paul Powderly, Colliers State Chief Executive ACT, said Canberra continued to be a highly sought after investment destination for domestic and off-shore capital.
“Recent Property Council of Australia data confirms the Canberra CBD vacancy rate has tightened to just 1.7% at January 2019 in the A-grade market, while B-grade is forecasted to tighten off the back of limited available options,” he said.
“In addition, the strength and relative value of the Canberra leasing market versus other eastern seaboard destinations continues to provide an attractive investment proposition,” said Mr. Powderly.
Tim Mutton, Head of Sales & Investments, ACT at JLL, said 10 Moore Street provides an opportunity for investors to buy an asset underpinned by quality tenants at metrics unavailable in Sydney, Melbourne and Brisbane.
“There are few opportunities to acquire assets with income profiles underpinned by tenants of this quality at pricing comparable to this anywhere on the Eastern Seaboard,” said Mr. Mutton.
“Major tenant Optus’ recent renewal will bring their ultimate tenure in the building to more than 25 years, reinforcing how attractive this asset is to corporate tenants and the opportunity it offers investors looking to capitalise on Canberra’s longer term, stable growth,” he said.