A Sydney-based investment fund has purchased Woden's Lovett Tower with plans to refurbish the 24-storey office building.
Hunter Investment Corporation, owners of the Hunter Economic Zone, has acquired the Keltie Street site in Phillip as its first Canberra property investment.
The firm have remained tight-lipped on the sale price before it settles in mid-July, however sources indicate the figure was close to $30 million.
The former government office block was listed for sale in March with price expectations of $28 million.
Hunter Investment Corporation plan to renovate the tower and relaunch it as an A-grade, energy efficient office building - an undertaking that could cost $40 million.
Victor Cavasinni, development manager at Hunter Investment Corporation, said a foray into the Canberra market had been on the cards for some time.
"We could not pass up the opportunity to acquire one of Canberra's most iconic commercial towers," he said in a statement.
"Woden is going through a fantastic stage of revitalisation, including the new CIT campus and light rail. We aim to set a new benchmark in commercial office space, sustainability and smart workplaces."
Sellers Brite Developments had submitted a development application to convert Lovett Tower into a build-to-rent complex with up to 299 apartments.
These plans, as well as the potential to be knocked down and rebuilt with 28 storeys, were considered by a range of buyers, according to Guy Randell, managing director at Burgess Rawson, who marketed the sale.
"We had interest from numerous funds, privateers and local [parties] and we received several offers throughout the campaign," Mr Randell said.
"The build-to-rent aspect was certainly something that attracted the majority of fund and local developers and the ability of its height."
Lovett Tower was once Canberra's tallest building, before Geocon's 27-storey High Society tower overtook it in 2020.
"Some people had some interest in making it Canberra's tallest building [again] and then there was others who just saw it as a good office refurbishment play as well," Mr Randell said.
With 25,000 square metres of lettable space, Lovett Tower could add significant supply to the Canberra office market, where vacancy rates are the lowest among the capital cities.
The acquisition adds to Hunter Investment Corporation's portfolio of office investments. In December, the company purchased the GE Tower at 32 Phillip Street in Sydney's Parramatta for around $70 million.
