Sovereign-backed income stream with 13-year WALE and fixed rental growth expected to draw strong institutional interest
Canberra office asset on long-term AFP lease comes to market
A large-scale Canberra office asset leased to the Australian Federal Police (AFP) with a long-dated government lease is set to come to market, expecting to meet investor appetite for defensive, sovereign-backed income streams. The Edmund Barton Building at 47 Kings Avenue in Barton, is 100 per cent leased to the Commonwealth of Australia, represented by the AFP, with a weighted average lease expiry of around 13 years and annual rental reviews of 3.5 per cent. The property generates a net passing income of approximately $20.5 million per annum.
The asset comprises approximately 44,089 square metres of net lettable area on a substantial 26,474 square metre landholding, making it one of the institutional grade office assets in the precinct. Tim Mutton, Managing Director & Head of Capital Markets at JLL ACT is marketing the asset alongside Jonathan Vaughan, Partner – Institutional Sales at Knight Frank.
“Opportunities of this nature are exceptionally rare, combining institutional scale with a long-dated government lease and sovereign-backed income,” Mr Mutton said. “In a market where investors are increasingly focused on certainty of cashflow, this asset offers a level of income security and duration that is difficult to replicate.”
Located within Canberra’s Barton precinct with the lowest vacancy rate in the country, the building is close to Parliament House and is surrounded by key federal government departments, reinforcing its long-term strategic importance. “We are seeing strong demand from both domestic and offshore capital for assets that provide long-term income visibility, particularly those underpinned by government covenants,” Mr Vaughan said. “Assets of this scale in Barton are extremely tightly held, and with limited supply and high barriers to entry, we expect this opportunity to resonate strongly with investors seeking defensive, core exposure in Australia.”
The Edmund Barton Building plays a key operational role within Australia’s national security framework, housing critical infrastructure including the AFP’s National Operations Centre and other specialised facilities, supporting its long-term occupation. Real I.S. Australia Managing Director Désirée Bühler said the asset had delivered consistent performance over the past 15 years as part of the group’s local portfolio. “This divestment follows the successful lease extension managed by our local AM team, and we are confident the asset will appeal to investors seeking secure income with strong underlying fundamentals in one of Australia’s most important government precincts.” Ms Bühler said.
The property will be offered for sale via an international expression of interest campaign closing 18 June 2026.