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News release

Canberra

A-grade Canberra office asset with long-term Commonwealth lease offered for sale

255 London Circuit is the first institutional grade asset to be offered in the Canberra market since 2013


A prominent office asset fully leased to the Commonwealth of Australia in Canberra’s CBD is being brought to the market exclusively by JLL on behalf of London based Brompton Asset Management. 255 London Circuit will be the first institutional-grade asset offered for sale on market since Industry House was sold off-market in 2013 by JLL.​

The property is being offered for sale by JLL's Head of International Investments - Australia, Simon Storry and Head of Sales and Investments - ACT, Michael Heather. It is for sale via an International Expressions of Interest campaign closing at 5pm on Thursday 8 October 2015.

The 6-storey A-grade office building is fully leased to the Commonwealth of Australia until September 2027.

Mr Storry said, “This property offers the market an opportunity to acquire a modern A-grade asset with a blue chip Commonwealth tenant and long lease term within Canberra’s CBD location. There has been limited long lease assets formally offered nationally in recent times, and we expect strong interest from international and domestic buyers in acquiring the asset.”

Mr Heather said, “Adding to the strong Commonwealth Government tenant covenant and long term income of this property is a Weighted Average Lease Expiry (WALE) of 11.67 years. The property was also awarded a 5 Star Green Star office design v2 rating, a 5.5 Star NABERS Water Rating and 4.5 Star NABERS Energy Rating. 

“Canberra currently offers a value proposition and an attractive option for investors. Recent yield compression in both Sydney and Melbourne has seen the prime equivalent yield spread between Canberra and other core CBD office markets widen compared to historical standards.

“The property is well positioned to take advantage of future developments that may occur from the City to the Lake project proposed by the ACT Government.  This project is aimed at better connecting the City to Lake Burley Griffin through a number of proposals, including residential, business and leisure opportunities,” said Mr Heather.

Notable buildings situated within close proximity to 255 London Circuit include the Canberra Convention Centre, Crowne Plaza Hotel, Canberra Casino and Industry House, the latter of which  was sold by JLL for $151.7 million in October 2013. A 15-storey office tower in Canberra's CBD, also with a strong government lease covenant, the sale of Industry House represented the biggest office transaction in Canberra that year.