Another Allco asset on the sale block
Investors are being sought to buy half of the Caroline Chisholm Centre in the ACT, the five-storey national headquarters of the Department of Human Services.
The half share is expected to fetch between $90 and $100 million, with the sales process being handled by Jim Shonk and John Marasco from Colliers International.
Shonk and Marasco are acting under the instruction of receivers at KordaMentha.
The half share listed for sale was owned by failed property trust and Allco subsidiary Record Realty, which was placed in receivership in September last year.
At the height of the last equity and property booms Record Realty was worth more than $2 billion.
Shonk told Property Observer he expected the half share to find a market from either local institutional investors or offshore institutional investors in Asia or Europe.
It has a passing gross rental of $17,092,023 for the 100% interest, with over $1 million coming from car parking fees.
The building is situated in Greenway, ACT, within the Tuggeranong Town Centre on the Corner of Athllon Drive and Soward Way.
It is a premium-grade five-storey office building with more than 40,000 square metres of office space on a 5.35-hectare site, all occupied by the department.
It was purpose-built in 2007 as the department’s national headquarters. The government is also the anchor tenant of the Tuggeranong Town Centre, 25 kilometres south of the Canberra CBD.
The complex includes around 1,100 car spaces, conference facilities, auditorium, amphitheatre/TV studio, gymnasium and café with commercial kitchen.
The federal government has signed an 18-year lease expiring July 4, 2025, plus two further option periods of five years each.
The property is “unexpired residue of a Crown Lease for a period of 99 years.
from 26 June 2002”, effectively a lease in perpetuity, with a statutory right to take up successive further 99 year terms, at no cost other than an application fee, currently about $2,500.
The other half is held by Singapore-based Frasers, which acquired it in June 2007 for $108 million and forms part of its commercial property trust.
The building is being sold by expressions of interest closing October 21.