Centuria Metropolitan REIT has announced the acquisition of the Nishi building at 2 Phillip Law Street, Canberra for $256 million.

Situated in the gentrifying NewActon within the Civic Precinct, the A-Grade building expands CMA’s portfolio value to $2.1 billion, enhancing the portfolio’s WALE and occupancy, while also increasing its exposure to Australia’s major office markets,

In a statement released to the ASX, Fund manager Grant Nichols said the purchase reiterated CMA's position as Australia’s largest pure-play office REIT. 

“CMA continues to develop its portfolio by introducing newly built, institutional grade assets that support the needs of employees and our tenant customers," he said.

Source: Centuria

"Nishi provides excellent amenity for the NewActon and Civic precincts while the large floorplates create an efficient design that can accommodate a range of government or corporate tenants."

The sale was brokered by JLL ACT Head of Investments and Sales, Tim Mutton, who said the sale attracted strong interest from major domestic and international investors.

"Investors were drawn to the strong architectural vision, tenant quality, and diversified income profile underpinned by the Commonwealth of Australia and corporate occupiers such as Clayton Utz and Oracle," he said.

“As one of the few buildings in Canberra that provides the floor plate, services and amenity to attract both corporate and Government occupiers, Nishi is a building that we expect will perform strongly for its new owners."

Mr Nichols said the Civic and NewActon precincts were very well positioned to benefit from future infrastructure plans across the Canberra market.

“Canberra’s A-grade market continues to demonstrate strong fundamentals with vacancy rates below 5 per cent, the lowest levels in the last decade and balanced supply forecasts that are supported by healthy pre-commitment levels.

"We believe this will open new commuting opportunities that can support employee well-being.”

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