- 50% of the Canberra property is underpinned by the Federal Government and Defence Force Recruiting
- The Charlotte Street property has 97% of income underpinned by the Federal Government too, along with Boeing Defence
- 86% of York Street is underpinned by the Logan City Council
The Australian Unity Office Fund (AOF) has recently listed three premium office assets across Queensland and the ACT.
AOF has previously disclosed Knight Frank and Colliers have been jointly appointed to investigate the sale of some or all of AOF’s properties. The three assets are 64 Northbourne Avenue, Canberra,150 Charlotte Street, Brisbane and 90-96 York Street, Bentleigh.
The assets are targeted to attract a range of domestic and international buyers.
64 Northbourne Avenue
The first is an asset (main image) located in the nation’s capital, and is currently 100% leased. The Northbourne Avenue property offers 6,375 sqm of NLA over six levels, with triple street frontage. 50% of the income is underpinned by the Federal Government and Defence Force Recruiting.
Sean North and Daniel McGrath of Knight Frank have the listing in conjunction with Matthew Winter and Paul Powderly of Colliers.
“The significant site area of 1,500m²-plus with wide exposure, including to the ACT light rail terminus may also provide future redevelopment prospects,” Mr McGrath said.
“This property will be a well sought-after asset in the changing market, being a multi-tenanted, low risk asset in arguably Canberra’s best location.”
“The asset provides an attractive value-enhancing proposition given the diversified tenancy and expiry mix as well as the flexible floorplate that caters to multiple tenant types. Strong leasing fundamentals underpin the ACT office market, and in particular the Canberra CBD which supports future renewal or reletting prospects,” Mr Winter said
150 Charlotte Street
150 Charlotte Street provides around 11,080 sqm of net leasable area over 19 levels. 97% of the asset’s income is secured by the Australian Government and Boeing Defence.
Located in Midtown, it will benefit from the upcoming opening of the Queens Wharf and Cross River Rail. Jason Lunch and Hunter Higgins of Colliers, and Justin Bond and Matt Barker, will be managing the sales campaign for the building.
“150 Charlotte Street provides an opportunity to reposition the asset through strategic leasing, asset enhancement works and active asset management. The building fundamentals provide ultimate flexibility to cater for the most active tenant sector of the market,” Mr Lynch said.
“The Brisbane CBD is currently undergoing a transformation, with infrastructure projects in the pipeline and public transport projects set to improve the city, as well as accessibility. Charlotte Street will benefit more than most locations from this activity and shall also be boosted by its proximity to Albert Street, where the first CBD train station in more than 120 years is being built,” Mr Bond said.
90-96 York Street
Located in Beenleigh, 90-96 York Street is a new seven-level A-grade boutique office building that offers an NLA of around 4,650 sqm and a WALE (by income) of 8.4 years. 86% of the income is underpinned by Logan City Council for 10 years.
Mr Lynch and Hunter Higgins of Colliers is listing this property with Blake Goddard and Christian Sandstrom of Knight Frank.
“90-96 York Street provides the opportunity to secure one of Brisbane’s best quality metropolitan office assets. Located within the Beenleigh Principal Activity Centre, the asset provides exceptional ESG qualities targeting a 4.5 Star NABERS energy rating and provides tax effective annuity-style return profile given a WALE of 8.4 years,” Mr Lynch said.
“One of the biggest drawcards of this asset is the strength of the covenant, with a long-term commitment to Logan City Council. Logan Water is occupying the building, having relocated it from multiple different locations into one central location to service the catchment of Beenleigh. It’s also a brand new building with significant depreciation benefits in a central location close to retail amenity and public transport, in the growing City of Logan,” Mr Sandstrom added.
The property is being sold via an international expression of interest campaign, which closes next month.
