A leased investment in one of Canberra’s major metro growth areas comes to market
12 October 2022An office investment in Bruce, fully leased to a mix of Australian Government, not-for-profit and private tenants and positioned upon a significant landholding, has come to market.
JLL’s Mitch Frail and Tim Mutton have been exclusively appointed to sell 26 Thynne Street, Bruce via an Expressions-Of-Interest campaign.
78% of the property is leased to Blue-chip or Commonwealth Government occupants. One of the tenants, Australian Institute of Health and Welfare (AIHW), have been in occupation for over 25 years.
The asset generates a net income of approximately $1,019,951 per annum with 3.13-year weighted average lease expiry (WALE) by income. 94% of the building has fixed annual rental reviews between 3% and 3.75%.
Mr Frail said, “This is an exciting opportunity to secure a well-positioned near-city asset, securely leased to a diverse mix of tenants. 26 Thynne Street, Bruce offers an exceptional investment proposition in a market currently starved of quality passive investments.
“The property is underpinned by strong investment fundamentals, and a low risk profile given multi-tenant occupancy to blue-chip and Commonwealth Government occupants. Plus, a staggered leasing profile provides investors with diversified income reducing significant vacancy risk,” said Mr Frail.
Office vacancy in Bruce sits at 0.76%, compared to the broader Canberra market, which is still extremely tight at just 5.1%.
Mr Mutton said, “26 Thynne Street is positioned on a large 9,074 sqm parcel of land. The valuable land component of the site benefits from its flexible CZ5 Mixed Use Zoning close to the Belconnen Town Centre, allowing for a number of uses under the ACT Territory Plan to add future value STCA.
“Belconnen is one of the most well-regarded precincts in Canberra is a highly desirable location for both residential and commercial occupants alike. Ongoing investment from developers in the Belconnen area has seen a number of residential, hotel, retail and leisure developments contribute to the growing population of the town centre. Investment sales in the Belconnen region are 100-200 bps higher than Canberra CBD,” said Mr Mutton.
The precinct offers ease of access to the CBD and provides immense long-term opportunity to capitalize on its proximity to the University of Canberra, Radford College, Calvary hospital, the ACT Government’s $14 billion infrastructure program, and future redevelopment of the Australian Institute of Sport precinct.
Expressions-of-Interest for 26 Thynne Street, Bruce close on Thursday 3 November 2022 at 4pm (AEDT).