photo: West Block ground
West Block, 21 Queen Victoria Terrace, a historic heritage office building located within the National Triangle, a blue-ribbon precinct in Canberra, is set to begin a new chapter, returning to the heart of Australian government operations.
The prime property has a guide price of $70 million, offering an unparalleled investment opportunity, featuring an 11.3-year lease (11-year WALE) secured by the AAA-rated Commonwealth Government and fixed income growth of 3.50% p.a.
Originally constructed in the 1920s when the Commonwealth Government relocated from Melbourne to Canberra, West Block holds a unique place in Australian political history. As one of the original three buildings of the relocation, it even housed the Prime Minister’s office for many years, making this a rare opportunity to acquire a piece of Australian political heritage.
Heritage office assets of this scale are rare in Canberra, and West Block’s rich history further enhances its prestige. Located on a 1.7-hectare island site within Canberra’s sought-after Parliamentary Precinct, West Block offers over 8,200 sqm of premium office accommodation.
The building is just 400m from Parliament House, along a major arterial road connecting the Parliamentary Precinct to the Civic CBD. The proposed light rail network extension, with a stop just 500 metres from the asset, further enhances the property's future value.
Canberra’s office market is one of the strongest in the country, and in the Parliamentary Precinct where West Block is located, prime vacancy is exceptionally low at 1.6% with limited new supply under construction. Canberra office vacancy reflects 9.5% or 8.8% in A grade assets.
West Block has undergone significant capital investment, with over $45 million spent to revitalise the property into a premium-grade public servant facility. This capital base building works program has underpinned a low-capex, annuity-style investment for prospective buyers.
West Block features fully upgraded premium services and finishes, befitting the asset’s unique
location and heritage. The upgrade works are targeting a 5-star NABERs rating (tracking to 5.5 Stars), and the property holds significant potential for future development. A Development Approval has already been secured for a new 690 sqm building in the southeast corner
Daniel Wolman and Oliver Hay of Cushman & Wakefield and Paul Powderly, Alex McColl and Matthew Winter of Colliers are handling the sale.
Daniel Wolman of Cushman & Wakefield said this is an asset of national significance, featuring the ultimate investment credentials — AAA-rated, 11.3-year income, with low-capex, annuity-style returns.
“West Block's place in Australian political history, combined with its location in one of the best-performing office submarkets in the country, political significance, and secure government lease, makes this a unique opportunity,” Mr Wolman said.
Paul Powderly of Colliers said, "West Block is poised to continue playing a central role in Australia’s government landscape for years to come. With exceptionally low vacancy rates and long-term government tenancy, this is an investment that offers both stability and prestige at the most powerful address in Australia.”
