Colliers International has sold the Australia Taxation Office (ATO) building in Albury for $48 million reflecting an 8% yield.
The seven storey commercial building is being used by the ATO for the administration and collection of business activity statements.
The ATO occupies 95% of the total lettable space and has a 15-year lease.
Colliers International received expressions of interest from onshore investors and overseas parties in the United States, Singapore and New Zealand.
“The sale of the Albury ATO building confirms what we’ve been saying in the market place – there is a flight to quality and above all else the ability of an asset to attract secure long term cash flow is king,” says director of investment Services and office leasing, Tim Mutton.
“Our experience in major office building sales is that buyers are interested in the security of the Commonwealth lease covenant and want cash flow for more than 10 years,”
Located at 520 Smollett Street, The 10,786 square-metre building has 56 basement car parks and was built by the Doma Group.