Canberra government buildings earmarked for hotels, shops
Major development and investment companies have swooped on four properties in the parliamentary triangle precinct in Canberra that were sold off by the federal government for a total of $122.5 million and will be turned into new hotels, shops and office space.
Private groups EG Funds Management and Amalgamated Property Group have joined Canberra-based Geocon as owners in the parliamentary triangle, which includes Parliament House, Old Parliament House, the High Court and the National Gallery of Australia.
Sydney-based EG Funds picked up Anzac Park West and East Block for $51 million and $15.5 million respectively.
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The government sold the West Block buildings in the precinct for $6.25 million in September to developer Geocon which is now planning a hotel and the latest buyers are following suit, with major projects now in the works.
EG must honour a minimum 10-year lease with the tenant of Anzac Park West, the Department of Defence, which pays $5.8 million a year for the office block. But the investment house is best known for overhauling ageing properties.
Amalgamated bought Anzac Park East and Constitution Avenue Development for $34.3 million and $21.7 million respectively.
The Federal Government is divesting millions of dollars worth of property. Picture: Getty.
The Canberra-based company says the combined land area of its sites is more than 31,000sqm and it will now transform the existing ANZAC Park East office building, which has been vacant for two decades.
It will demolish that complex and redevelop it into a mixed-use precinct that may include residential, commercial, restaurants, hotel, and shopping.
Amalgamated general manager Phil O’Brien said the company recognised the significance of the sites and the opportunity “to create vibrant mixed-use developments, while also respecting its heritage status”.
The sales of the four buildings were flagged by Finance Minister Mathias Cormann in April when he said West Block and East Block would be sold alongside Anzac Park East and Anzac Park West.
Property experts had tipped the sales could reap as much as $300 million when Joe Hockey set aside $4.8 million to fund the divestment in his 2015 budget, but the figures were revised down in light of the derelict state of some of the buildings and conditions on the sale of all of them.
Cormann says that private investment presents “an opportunity to revitalise all these properties and ensure the significant heritage values are retained”.
This article originally appeared on www.theaustralian.com.au/property.
