ATO building sale progresses with Charter Hall and Investa understood to be among interested buyers for the Civic property

Charter Hall and Investa are believed to be among those who have expressed interest in the commercial building, in the vicinity of $300 million.

It is understood Charter Hall is conducting due diligence on the property, according to market sources.

Charter Hall and Investa declined to comment.

The Genge Street property, known as the Gnabra-Kembery building, was listed for sale in June with an initial price guide in the high-$300 millions.

As reported by The Canberra Times on Wednesday, ATO staff will move from the Civic offices in 2025 after signing a 15-year lease for a new site in Barton.

Property market sources say the latest news from the ATO will have little impact on the sale as any interested buyers would have been aware the department was shopping around for new office space.

The current owner of the building, German-based investment fund Real I.S. Australia, paid $204.5 million for the property in 2009, CoreLogic records show.

The revised price expectation is more in line with the $335 million Charter Hall and GIC paid for 50 Marcus Clarke Street in 2021.

When the deal was struck, the building was wholly tenanted by the federal government's Department of Education, Skills and Employment, whose lease is also due to expire in 2025.

Both Charter Hall and Investa have been actively buying up property in Canberra in recent months.

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 set to acquire the Geoscience building in Symonston - also owned by Real I.S. Australia - for more than $370 million, which would set a new commercial property record for the ACT.

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Meanwhile Investa Commercial Property Fund recently secured part of Terry Snow's Constitution Place office building for about $275 million.

While the news of ATO's relocation has sparked concern among some local businesses, recent vacancy data shows demand for Canberra office space is strong.

According to the Property Council of Australia, Canberra's office vacancy rate - calculated on whether a lease is in place - was 8.6 per cent for the six months to July. It was the lowest vacancy rate among the capital cities.

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