German fund buys Canberra’s Maddocks House
German fund manager Real I.S. has swooped on an office complex in Canberra’s government district, picking up Maddocks House for $29 million.
The group picked up the property at 40 Macquarie St from the private Hedley Property Investments, on an initial net yield of 7.25%, and will put it into a mutual fund. The deal was brokered by Daniel McGrath of Knight Frank.
“In terms of our purchasing strategy, Canberra ticks all the boxes as the perfect location,” said Axel Schulz, global head of investment management at Real I.S. “With our long-standing investment experience in the Australian market, we are successfully continuing to offer attractive investments for private investors.”
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Maddocks House sits in the parliamentary precinct in Barton on the corner of Macquarie and Blackall streets. The building, constructed in 1996, has a ground and two upper floors of 1500sqm each as well as a 75-bay basement carpark.
The A-grade building spans about 5500sqm and houses a mixture of federal government agencies and private-sector tenants. The property’s main tenant is a major public-sector institute.
The complex has a five-star rating under the National Australian Built Environment Rating System.
“Thanks to its exceptional environmental performance and prime location in one of Canberra’s most sought-after office markets, this acquisition is nothing short of a future-proofed investment,” says Volker Gladis, Head of Investment Management at Real I.S. Australia.
Over the past 10 years, the Real I.S. Group has cultivated a broad local network in Australia. Since 2012 it has had its own subsidiary in Sydney.
Real I.S. Australia is well-known for pursuing an active asset management strategy and has built up a near $1.3 billion portfolio that includes other towers in Canberra, Adelaide and Melbourne.
This article originally appeared on www.theaustralian.com.au/property.