Geoscience HQ building at 101 Jerrabomberra Avenue, Symonston ACT sells for $363.5 million

It sets a new commercial property record for Canberra, beating the sale of 50 Marcus Clarke Street by nearly $30 million.

Property investment group Charter Hall released a statement on Wednesday confirming its purchase of the site.

The building, leased to Australia's pre-eminent geoscientific research organisation, was listed for sale in February by investment manager Real I.S. Australia, with a price guide upwards of $360 million.

The German firm purchased the 16-hectare site in 2007 for $234 million.

One of Charter Hall's ASX-listed funds secured a 25 per cent interest in the property, partnering with two other Charter Hall-managed funds to acquire the site.

Charter Hall's Long-WALE real estate investment trust invested $90.9 million for the 25 per cent stake on a 7.4 per cent initial yield.

Geoscience will remain in the building for some time, as the deal includes a 9.6-year weighted average lease expiry and fixed annual rent increases of 3 per cent.

Spanning more than 160,000 square metres of land, the Geoscience building is located at 101 Jerrabomberra Avenue, Symonston, about seven kilometres from Canberra's CBD.

The building was purpose-built for the agency in 1997.

The unique property comprises 32,659 square metres of lettable area across three separate buildings including office, specialised laboratory and storage, warehousing, childcare facilities and parking for 652 vehicles.

It also includes the National Earthquake Alerts Seismic Centre.

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Charter Hall will predominantly fund the purchase from the sale proceeds of an industrial and logistics facility in Hoppers Crossing, Victoria.

The property sold for $74 million and is due to settle in December.

David Harrison, Charter Hall managing director and group CEO, said Geoscience Australia was a "compelling" investment in Canberra.

He said government tenants, attractive yields and yield growth offers resilient investment outcomes.

The sale was brokered by Colliers and JLL.

"This property is very special and we knew that based on the investment credentials it had the potential to achieve a record sales price," Colliers ACT chief executive Paul Powderly said.

In 2021, Charter Hall purchased the ActewAGL office building at 40 Bunda Street for $76 million and 24 Wormald Street, Symonston, leased to the Attorney-General's Department, for $36 million.

The group is also believed to be undertaking due diligence on the Australian Tax Office headquarters on Genge Street in Civic.

Charter Hall has also purchased the new Tax Office building, set to be built in Barton ready for the ATO's 2025 move.

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