Arcana Capital has made a strategic acquisition in the thriving Canberra real estate market with the purchase of the Capital Centre at 2-6 Shea Street, Phillip.
Arcana Capital acquired the office building from a Private Investor for $17.4 million, capitalising on an initial yield of 9.15%* and a 2.74-year WALE (Weighted Average Lease Expiry) by income.
The Capital Centre, located in the rapidly growing suburb of Phillip, is a prominent government-backed value-add asset, boasting a diversified tenant mix, including major occupants such as Suncorp, Feros Care, and Aboriginal Hostels - a notable Australian Government organisation.
The property encompasses an impressive Net Lettable Area of 4,102sqm, situated on a prominent corner site spanning 4,487sqm, with ample parking space for 124 cars.
Notably, the property's strategic location adjacent to the forthcoming development of the Woden Bus Depot is a testament to the area's growth potential. This development aims to enhance public transportation facilities in the region, creating further demand for office space.
The sale of this property was brokered by Mike Walsh, Peter Court and Daniel Cullinane of Cushman & Wakefield who highlighted that the development plan for the Woden Bus Depot includes the construction of a larger, more sustainable, and eco-friendly facility, featuring upgraded administration and operations buildings, a workshop, and staff facilities. The project is scheduled for completion by 2025.
Commenting on the transaction, Peter Court, Cushman & Wakefield’s Director, Joint Head of Middle Markets, QLD remarked, "The Canberra office market is experiencing robust tenant demand, supported by a B Grade vacancy rate of 5.9%, lower than the 10-year average of 10.2%. Favorable economic conditions, increased public spending, and growth in white-collar employment create an attractive investment environment in the Canberra market."
Phillip, situated in the Woden Valley district of Canberra, is primarily known for its commercial and industrial sectors, housing a mix of retail shops, offices, and warehouses. The suburb's economic drivers include the thriving retail and service industries, with support from the nearby Westfield Woden shopping center.
Additionally, Phillip is home to a significant health and medical sector, boasting several private hospitals and medical practices. The suburb is also host to the Canberra College, one of the largest high schools in the region.