Molonglo exchanges contracts with City of Brisbane Investment Corporation for sale of 33 Allara Street, Canberra City

Contracts have exchanged on 33 Allara Street in Civic, which houses a mix of government, corporate and hospitality tenants across its eight storeys.

Molonglo Group declined to comment on the transaction before the sale is finalised in early April, however sources have confirmed City of Brisbane Investment Corporation is the buyer.

Sources also confirmed the sale price is within the vicinity of $71 million.

The A-grade office building was completed in 1989 and has since undergone a full refurbishment under Molonglo Group's ownership.

CoreLogic records show the developer purchased the property in 2015 for $29 million.

The building includes more than 9,700 square metres of net lettable area and parking for 117 cars.

According to the listing description, the building is currently 89 per cent occupied and offers an annual net income of more than $4.35 million when fully leased.

Molonglo is also behind the development of Canberra's award-winning New Acton precinct, including the Nishi building which it sold part of for $256 million in 2019.

The developer now has its sights set on the major redevelopment of Dairy Road in Fyshwick, which it acquired from the Commonwealth in 2002. A masterplan for the precinct is expected to be released soon.

Molonglo director Nikos Kalogeropoulos told The Canberra Times in 2020 the precinct would include spaces for "work, recreation and different types of living".

"Over the next 10 to 15 years Dairy Road will evolve from solely industrial use into a place with retail, light industrial, commercial, residential, public open spaces, creative and cultural places," he said.

Commercial office sales have continued strong in 2022, after last year's record level of office transactions, which totaled more than $1.4 billion.

Canberra's office vacancy rate of 6.2 per cent, the lowest its been since 2008, has proven to be an appealing factor for investors outside the capital.

Singapore-based investment company GIC purchased 50 Marcus Clarke Street for $335 million in December as part of a joint venture.

Low vacancy rates also played a role in Oceana Property Partners' decision to purchase Canberra's historic West Block from Geocon last month.

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