Long-term Darwin families sell two key CBD buildings for $50 million

A PROPERTY fund has snapped up two Darwin CBD buildings for $50 million

Seth Chin on the Esplanade in front of one of the buildings that have just sold for $50 million. Picture: Katrina Bridgeford

A MELBOURNE property fund has snapped up two Darwin CBD buildings for $50 million.

The buildings are Old Admiralty Towers, which currently houses the Northern Territory Government’s Department of the Attorney-General and Justice and the nearby Heritage Building, which has Corrections offices and private apartments.

The buildings were part of the Jalouise property portfolio that features some of Darwin’s landmark office buildings.

The directors of Jalouise have an unbroken association of the Canaris, Liveris and Mitaros families with Darwin and the Northern Territory over five generations, and all three families have been heavily involved in the community and commerce of the city and the Territory.

It’s the first time Melbourne-based Peak Equities, which holds assets in Victoria, Queensland, South Australia and Western Australia, has included Darwin in its assets.

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Peak Equities currently has an overall portfolio worth close to $250 million with nine syndicated trusts operating across large format retail, industrial and office sectors.

In a show of confidence for Darwin’s future, Peak Equities executive director David Borsky said the buildings were chosen in Darwin because of strong economic growth potential.

“The properties are all 100 per cent leased, offering long-term income security, with staggered lease expiries, an average remaining lease term of more than 12 years and an attractive combination of government and well-established private tenants in place,” Mr Borsky said.

Seth Chin from Darwin’s Chin Associates worked with global real estate service provider Savills on the deal.

He said the two buildings were never officially listed for sale on the market, but found a buyer in just eight weeks.

“We went to selected groups that were approved by the owners and used that process to sell the buildings off market,” Mr Chin said.

“With their prime Esplanade and Knuckey St locations they attracted interest from Singapore, Hong Kong, Sydney, Melbourne.

“So there was a lot of interest in the buildings.

“Yes, Darwin may be going through a down period at the moment, but investors see two things – future and opportunity – in Darwin.

“China is a market that is showing plenty of interest in Darwin, particularly in tourism. This has been stimulated by Landbridge’s presence and Donghai’s direct flights from Shenzhen to Darwin.

“When you take a step back from the market and look at it from an outsider’s perspective, the cycle is not that daunting and there is plenty of reason to be confident about Darwin.”