SC Capital move on Dexus Canberra asset
Singapore-based SC Capital has acquired Canberra’s Finlay Crisp Centre for $62 million from Dexus.
The purchase price represents a capital value of just $2,066/sqm, however SC Capital will partner with local asset manager Artifex Property Group to undertake a $50m overhaul to reposition the complex to win more tenants.
The centre, which comprises three buildings — Customs House, Allara House and Nara Centre — occupies an entire city block and sits on an 8,844sq m site with frontages to Constitution Avenue, Allara Street and London Circuit. The total net lettable area of all three buildings is almost 30,000sq m.
The fully occupied buildings are leased to Commonwealth Government and ACT Government tenants until 2019 and 2020.
The potential impacts of substantial near term vacancy and the need to spend a significant amount of capital to improve the asset had been a deterrant to the market for some time.
Dexus first put the building on the block in 2016 with a book value of $82.0m and a cap rate of 9.25%. After it failed to sell, Dexus revised the book value to $70.2m with a 9.0% cap rate. In 2018, Dexus revised it the value down again to $63m on an 8% cap rate.
The purchase by SC Capital just a day after SC Capital announced the acquisition of Rivervale Mall in Singapore from AEW Capital Management for $170 million. In March it also unveiled plans for a $700m mixed-use hotel and office tower Sydney for which it will seek investors later this year.