Sydney investors have snapped up a key Bruce office building for $6.675 million after a tightly contested auction that drew interest from Asia.

The Commonwealth-tenanted property at 38 Thynne Street is in the Fernhill Technology Park.

Selling agent Matthew Winter said the auction price had been in line with expectations, but the opportunity had been significant.

“It’s hard to buy a fully leased Commonwealth-tenanted building for under $10 million,” he says.

“The building houses the Australian Centre for International Agricultural Research, with more than nine years remaining on the lease plus options.”

Winter introduced the Bruce property to private and institutional groups in Singapore, Hong Kong and China recently as part of a Colliers International Asian Roadshow.

“We received solid interest from these Asia-based private investors and a significant level from potential buyers in Sydney and Melbourne,” he says.

The building was bought by the Hadley Green Investment Group.

“I believe they are looking to hold onto the asset long-term,” Winter says.

“The property is zoned CZ5, which means the buyer has the opportunity to explore alternative use on the site – such as residential – after the lease expires.”

The Fernhill Technology Park was originally designed as a specialised business zone, but has evolved into a mixed-use precinct including medium-density residential.

Meanwhile, the high-profile Shell and KFC site next to the Dickson shops has been sold by Ray White Commercial Canberra for $20.6 million.

The property was sold by RWC Canberra director, Andrew Smith, to a private investor before the scheduled auction.

He says there had been massive interest in the site, which returns annual net rental of $1,285,000.

“We fielded more than 70 inquiries during the marketing campaign,” Smith says.

“Potential buyers were attracted to the high-profile tenant mix, long-term redevelopment potential and the 7190-square-metre land holding. The site is also directly opposite the planned new Coles and Aldi mixed-use development.”

Mr Smith says other tenants include Coles Express, Subway, Ali Baba and Blockbuster Video.

“This site offers superb long-term cash flow with redevelopment options,” he says.

“The Dickson precinct is undergoing a huge transformation with three major mixed-use developments under construction and another two scheduled to begin in the next two years.

“These will deliver up to 1500 apartments, 6000 square metres of retail space and 13,500 square metres of commercial space,” Smith says.