COMMERCIAL property investor and funds manager Arcana Capital has launched, for wholesale investors, a unit trust for the acquisition of a government-anchored commercial office building in Canberra, ACT.
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.
For more information and to register your interest please visit here.
Earlier this year, Arcana successfully completed its acquisition of two fully leased and strategically located office buildings in Brisbane and Perth for a total of $25.55 million.
Headed by former Premier of Queensland and Lord Mayor of Brisbane, Campbell Newman, Arcana Capital has been operating since 2015, and has successfully completed the acquisition and ongoing management of 31 properties worth $212.71 million and raising over $110 million in investor equity.
In 2022, Arcana Capital added to its Australia-wide portfolio of industrial, fuel, medical, and non-discretionary retail assets with the acquisition of:
Two industrial and engineering workshops in Kalgoorlie WA for $8.15 million and $10.9 million respectively;
- A medical and allied health facility in Mackay QLD for $6 million;
- A well-positioned industrial facility in Paget QLD for $3.5 million; and
- A cold storage and multi-purpose logistics hub in Silky Oak QLD for $6.6 million.
Disclaimer:
This information has been prepared by Arcana Capital Pty Ltd ACN 609 576 623, AFSR 1245173 as an Authorised Representative of Arcana Capital Funds Management Pty Ltd ACN 633 164 155 AFSL 518744. The information is only for investors who qualify as wholesale clients under sections 761G of the Corporations Act 2001 (Cth) or to any other person who is not required to be given a regulated disclosure document under the Corporations Act. The Information is not investment advice. It is general information only and does not take into account the investment objectives, financial situation or particular needs of any prospective investor.
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