Australian Property Journal: Arcana secures prime Canberra office
Arcana has entered into a contract for the $17.4 million purchase of 2-6 Shea Street, Phillip: a high-quality, flexible commercial office in one of Australia’s strongest office leasing markets.
Colby Phillis, Manager – Investor Relations at Arcana Capital, said that the building held a commanding street frontage position in a high-growth Canberra satellite city.
“With parts of the nation’s capital in a significant growth phase, this quality asset represents a great opportunity for capital uplift through leasing, whilst providing a forecast starting distribution of 8% p.a. for wholesale investors,” Mr Phillis said.
Constructed in late 2010 on a significant land holding in the heart of the rapidly growing Woden Valley satellite city, 2-6 Shea Street is home to a strong mix of government and national commercial tenants, including anchor tenants Aboriginal Hostels Limited – a not-for-profit company wholly owned by the Australian Federal Government – and Suncorp.
The facility is highly accessible, with 124 car parks (1 per 33m2 of NLA) and proximity to three main roads: Tuggeranong Parkway, Athllon Drive, and Hindmarsh Drive.
Conveniently located alongside the pending redevelopment of the Woden Bus Depot (scheduled to finish by 2025) and only 1.1km from the upcoming Woden Light Rail Station, other nearby landmarks include Westfield Woden (850m), Woden Town Centre (1km), and Canberra Hospital (2.3km).
Currently at 62.4% occupancy – with a two-year rent guarantee over the remaining vacancy – Arcana will seek to fill the property’s vacancy as soon as possible and anticipates that the successful leasing will elevate the property’s capital value to align with comparable recent sales (approx. 6.75 – 8.00% net yield) and reinforce the net income.
The property currently has a 3.03-year WALE.
This article originally was published in the Australian Property Journal.