RG Casey Building, Canberra

The RG Casey Building, Canberra is the home the Australian Government Department of Foreign Affairs and Trade. The building is close to Parliament House, flanked by Brisbane and Sydney Avenues. In 1998 our client acquired the RG Casey Building as part of the Commonwealth asset disposal program. The building provides stable and predictable cash flows from a tenant of the highest credit rating.

Investment Details

  • Purchased in 1998 by an institutional client
  • Office NLA 46,382 sqm
  • 100% leased to Government
  • WALE more than 15 years
  • Current value approximately $270 million

Investment Returns

  • 5 year IRR forecast circa 14% pa

Relationship Benefits

  • Strategic asset and property management provides opportunity for long term strategic consideration of lease options
  • Open constructive dialogue with client to collectively understand and analyse risks and potential rewards of early renegotiation of tenancy
  • During 2011 and 2012 JGS negotiated directly with DFAT with the end outcome a new 15 year lease

Key JGS Property Disciplines

  • Acquisition advice
  • Asset and property management
  • Refinance during 2008 in advance of strategic re-leasing campaign
  • Agreement to lease including 15 year new lease to Commonwealth
  • Development and project management of the $30 million refurbishment

Learning Outcomes

  • Strong understanding of local market and politics provide better strategic outlook determining limited tenant relocation possibilities
  • Early tenant liaison and needs determination provide significant rewards from early re-lease negotiations