ASX-listed Growthpoint Properties Australia has bought a grade-A office building in Canberra for $84.6 million, reflecting a 5% initial income yield. 

The property, located at 2-6 Bowes Street in the ACT suburb of Phillip, offers 12,376 sqm of office space and 86 undercover parking spaces. 

The modern office is 96% leased and has a 9.2-year weighted average lease expiry (WALE), with the ACT Government’s Department of Health as the major tenant.  

Built in 1986, the asset was refurbished throughout 2017 and 2018 and has a 5.5-star NABERS energy rating and a 5-star NABERS water rating. 

“We are pleased to have exchanged contracts to acquire an A-grade office asset in the ACT, with high occupancy and a long WALE, increasing our investment in this market to $261 million,” said Growthpoint Managing Director Timothy Collyer. 

“The property is located in the suburb of Phillip, regarded as ‘Australia’s Public Health Hub’, which will benefit from ongoing government investment in infrastructure and transportation links.” 

The transaction comes after GIC and Charter Hall formed a joint venture last week to buy the 50 Marcus Clarke office building in Canberra’s CBD for $335 million. 

Recent office deals outside of Canberra include Irongate Group’s purchase of a Melbourne office stake for $130 million and Forza Capital’s acquistion of a grade-B office building in the Brisbane CBD for $41 million. 

Last week, LaSalle Investment Management’s acquisition of a grade-B office in North Sydney for $152.4 million and Stadia Capital’s purchase of a Harry Seidler-designed office building in North Sydney for more than $80 million.     

Dexus sold a Sydney CBD office to Charter Hall’s prime office fund for $385 million; Singapore-listed CapitaLand Integrated Commercial Trust purchased two grade-A office buildings in Sydney for $330.7 million, and Singapore-listed Keppel REIT purchased a grade-A office development in North Sydney for $327.7 million.    

Last month, Cromwell Property Group recently bought a Brisbane CBD office building for $184.7 million, while ISPT bought the headquarters of Victoria’s Country Fire Authority in Melbourne’s eastern suburbs for $35.8 million.