Anzac Park East and West to be demolished after sale

The buyers of Anzac Park East and West must demolish the portal buildings and redevelop the sites as a condition of purchase, sale documents have shown.

The sale is part of the federal government's push to divest in ageing office buildings and has been on the cards since last year.

Anzac Park East will cease to be Commonwealth land after its sale and revert to a 99-year crown lease.

As a condition of sale the new owner of Anzac Park East must demolish the building within four years of purchase and start work on a new building.

The derelict building has been vacant for almost two decades and sale documents said the Department of Finance considered the demolition clause "necessary" to ensure the land is used as "adaptive reuse is unviable".

The department said it had investigated several alternatives to knocking down Anzac Park East, including allowing it to be used by community groups or for adaptive reuse.

However the department ruled all other alternatives came with significant cost to the Commonwealth.

"Both asbestos and mould are present in the existing building. The building has been subject to vandalism, and boarded-up windows currently detract from the external appearance of the building," the sale documents said.

"If the building were retained in a vacant state, it would continue to degrade and, when coupled with the inactivity on the property, would become a blight on the landscape of Canberra and, in particular, the areas surrounding Anzac Park East including Anzac Parade and the Parliament House Vista."

The Department of Defence will continue to occupy Anzac Park West, even if it is sold, until their lease expires.

Bidders will be required to honour a minimum 10-year lease with Defence with options to extend for another six years.

However buyers must give Finance a timeline for knocking down and redeveloping the site, although they have up to 30 years to do so.

Both new buildings must have a footprint of 90 metres by 25 metres.

The department said: "This requirement is considered necessary to reinstate the paired relationship of the buildings along the Anzac Parade frontage of the properties after the demolition of the existing building on Anzac Park East and the development of a replacement building".

Both the demolition and redevelopment of both sites will be subject to planning approval from the National Capital Authority, regardless of whether the land remains territory or national land.

Changes to the National Capital Plan would allow the sites to be rezoned for future use to allow for hotels, offices, health centres and ground floor retail and childcare.

Director of the Australian War Memorial, Dr Brendan Nelson described the sale as a "sensible decision which is long overdue".

"I would expect that whatever replaces the existing structures would be sensitive to the iconic nature of the precinct," Dr Nelson said.

The Menzies-era office buildings were designed by National Capital Development Commission architect Gareth Ure alongside Commonwealth Department of Works Chief Design Architect Richard Ure.

One member of the Walter Burley Griffin Society said the sale was an "unforgivable betrayal of the national capital and the Australian nation" and would put the historic national vista at risk.

However a statement of heritage impacts found the "monumental character" of the area would be retained, provided the replacement building is subject to strict planning controls.

The report found while its architectural style would be lost in the redevelopment, "in the context of Canberra there are other buildings of the same style in Canberra City, along Northbourne Avenue and at Russell Offices so examples of the style and the educative value of the style will remain in Canberra".

It appears the West Portal Cafeteria will escape the wrecking ball.

The department said the site would be subdivided from Anzac Park West and its sale would require the buyer to keep it in good condition and not oppose its heritage listing.

The cafeteria site would also revert to a 99-year crown lease on its sale.