![The Australian Taxation Office at 21 Genge Street has sold. Picture by Karleen Minney The Australian Taxation Office at 21 Genge Street has sold. Picture by Karleen Minney](/images/transform/v1/crop/frm/146508744/1483a730-a0b4-4798-856b-837b9b20a6b9.jpg/r0_285_5568_3428_w1200_h678_fmax.jpg)
Property giant Charter Hall has finalised a deal to acquire the current Tax Office headquarters in Civic for $290 million.
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The two office towers at 21 Genge Street are currently occupied by the Tax Office and the department of Veteran Affairs.
The property was listed for sale in June with initial price expectations in the high-$300 million range.
Charter Hall's Prime Office Fund, together with Charter Hall Group, acquired the 42,000-square-metre property on a 7.5 per cent initial yield.
The Tax Office's 15-year lease, valued at more than $310 million, runs until November 2027.
However the department confirmed its staff will move from the Civic premises in 2025 to a new-build office in Barton, also owned by Charter Hall.
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It's unclear at this stage who will fill the space but Charter Hall said its investment strategy in the Genge Street property was to extend the current five-year weighted average lease expiry and take advantage of the "modern buildings' large floor plates and ideal location".
Charter Hall office CEO Carmel Hourigan said the asset joins the group's $30 billion office portfolio.
"Canberra's office market is one of Australia's most resilient office markets with low vacancy rates for prime stock, while large floor plates within a two-tower complex provides flexibility in meeting customers' needs," she said.
The seller, German-based investment fund Real I.S. Australia, purchased the 10-storey building in 2009 for $204.5 million.
The property was developed by QIC in 2007 and holds strong sustainability credentials including a five-star energy rating under the National Australian Built Environment Rating System and carbon neutral certification.
The deal was counted in the estimated $1.5 billion of Canberra office property that changed hands in 2022.
It included the record-breaking sale of the Geoscience building - also a Charter Hall acquisition - for $363.5 million.
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