The sale of the Australian Institute of Health and Welfare headquarters for nearly $40 million demonstrates the appeal of the Canberra market to investors seeking stability, Colliers International says.

KM Property Funds, a division of the KordaMentha Group, announced it had successfully added 1 Thynne Street to its portfolio, securing the high quality, 100 per cent occupied, purpose-built 5,848square metre office building for $39.3million. 

Colliers International Director Capital Markets and Investment Services, Matthew Winter, said there had been strong interest during the off-market campaign because "all the fundamentals were in place".

At a glance: 

• The Australian Institute of Health and Welfare headquarters in Canberra has been sold to KM Property Funds for $39.3 million
• The property has a building area of 5,848 square metres and a total site area of 9,578 square metres.
• An off-market campaign for the site was conducted by Colliers International Director Capital Markets and Investment Services, Matthew Winter.

“It is fully tenanted by the Australian Institute of Health and Welfare on a long-term lease that does not expire until the end of June 2029," he said.

“The total site area is 9,578 square metres, which allows for the provision of 208 car parks in its current configuration.

However, it has mixed-use zoning which would permit additional future uses. 

“Fixed annual rent reviews of 3 per cent per annum provides strong income growth.” 

Located in the north Canberra suburb of Bruce, 1 Thynne Street is close to the Belconnen Town Centre and a short walk to the University of Canberra. 

The property is a relatively new addition to the city's office market, having been constructed by BLOC only six years ago.

Managing Director of KM Property Funds Mario Papaleo noted the AIHW was an "exceptionally important" for the Australian community going forward.

"We understand that these are volatile and uncertain times, but we are pleased to bring a reliable investment opportunity to investors seeking a high degree of income certainty in their investment portfolio," he said.

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