Thursday, April 28, 2016

Another week, another light rail driven investment in Canberra


Last week a major Canberra developer announced a $250 million dollar investment in Gungahlin with light rail as a major driver. This week, Capital Metro Stage One has been the catalyst for another significant investment, this time  by a Melbourne based property group, South Haven. They are spending $29 million on a building on the corner of Barry Drive and Northbourne Avenue with direct frontage to the light rail. This is another clear sign that Transit oriented Development is occurring along the light rail corridor.

Domain reports on the purchase here:

One of Canberra’s most recognisable office buildings has sold to a Melbourne investor for $29.2 million. The seven-storey building at 73 Northbourne Avenue, on the corner of Barry Drive, attracted strong interest from interstate investors during the marketing campaign. It was South Haven Group’s first purchase in the nation’s capital, which according to selling agents, is a sign of continued momentum for the Canberra office market.

The surrounding amenity and the prospect of the light rail stopping just outside the building also resonated with interstate investors, according to Mr Heather.
“That was very attractive to the Melbourne private investors who have seen what the tram system provides to Melbourne.”

We do not expect demand to dwindle,” Mr Stewart said. “If anything, we would envisage greater investor interest along with some yield compression in line with Melbourne and Sydney locations.”

The full article can be read online here.

As well as this website, the facebook group 'Light Rail for Canberra' carries frequent updates on Capital Metro and light rail related news. 

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