A prominent corner office block in Civic, currently leased by utilities provider ActewAGL, has hit the market.
Built in 2009, the seven-storey building at 40 Bunda Street is currently owned by Event Hospitality and Entertainment, which counts Event Cinemas, QT Hotels, Rydges and Thredbo in its portfolio of brands.
The property is expected to sell for more than $80 million.
ActewAGL staff have occupied the office building since its completion and the company recently extended its lease to 2029.
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For potential investors, this means an eight-year weighted average lease expiry (WALE) and an approximate net income of $4.93 million per annum.
A spokesperson for Event Hospitality and Entertainment told The Canberra Times the sale was part of the group's strategy to divest non-core assets and "unlock value in the group's property portfolio to reinvest in future development opportunities".
In February 2021, Event Hospitality and Entertainment chief executive Jane Hastings announced the group would begin a divestment strategy with a goal to raise $250 million before tax within two years.
It came after the company's revenue fell 58 per cent over the six months to December 2020 due to the COVID-19 pandemic.
Colliers director of capital markets and investment services Matthew Winter said he had already received strong interest on the property.
"It's a highly attractive long-WALE asset that's going to appeal to institutional buyers and syndicators right around Australia and potentially even internationally," he said.
"We've had very good interest in the campaign. I think a lot of groups have known that this was coming to market for a bit of time but we're pleasantly surprised so far with the engagement that we've had and from a variety of capital sources."
Colliers and JLL are leading the sale and accepting expressions of interest until October 20, 2021.
The listing joins a number of high-profile commercial properties in Canberra that have gone up for sale in recent weeks, including an ACT Health office in Phillip, the YHA youth hostel in the CBD and most recently the Fyshwick Markets.
Mr Winter said Canberra was a desirable market for investors right now.
"Canberra is definitely a bit of a safe haven for investors at the moment, so anything with a long-term covenant with good income profile is going to be very attractive," he said.
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