In a huge sale for the National Capital, Scarborough House at 8 Atlantic Street, Woden has sold for $83 million. The property was put to market by Tim Mutton and Luke Billiau of JLL and Paul Powderly and Matthew Winter of Colliers International. The vendor was Centuria Scarborough House Fund, a closed-ended single asset unlisted property trust managed by Centuria Property Funds Ltd. The building was purchased by Sentinel Property Group, an Australian property investment firm focused on commercial and industrial property trusts. They will place the asset in their Sentinel Regional Office Trust.
Scarborough House is a 14-storey office building constructed in 1972 with a net lettable area of 16,782 sqm. A $32m refurbishment in 2005 included the extension of the existing basement, extension of each of the floor slabs, total replacement of services, provision of a new facade to the full perimeter of the building's new footprint, and construction of a new podium. It is fully occupied by the Department of Health on a 10-year lease until July 2025.
The building last traded at $72,328,267 when Centuria purchased it in 2017. At $83,000,000 the current sale represents an initial yield of 7.86% on a passing income of $6,525,041 (n).