8 July 2003

Integrated property services group, St Hilliers, has purchased a prominent office building in Canberra further reinforcing its commitment to the Australian Capital Territory.

St Hilliers is familiar with the ACT property market having operated a branch office in Canberra since 1998 and through its involvement in the Kingston Foreshore development, the first major residential project on the foreshores of Lake Burley Griffin. St Hilliers is in joint venture with the ACT Government to develop, design and construct 'The Gateway', a 167 dwelling residential development at Kingston.

The new acquisition is at 496 Northbourne Avenue, Dickson. The four storey modern building was purchased for an undisclosed sum and is fully leased to Telstra Corporation Limited, until 31 October 2007.

St Hilliers Group Managing Director, Mr Tim Casey, said the company looked to acquire strategic properties with short term rental income and longer term redevelopment potential.

"The potential of the Northbourne Avenue property has not been realised fully and St Hilliers will be able to add significant FSR to the property on expiry of the Telstra lease," he said.

"The property's flexible zoning means it has the potential to be refurbished or converted to residential or mixed use. The income stream provided by the tenant is an added bonus as we consider various development options."

Built in 1986 on a 6,090 square metre block of land, the building has approximately 3,950 square metres of nett lettable area (NLA) and on grade parking for 125 vehicles.

Mr Casey added that St Hilliers had increased its involvement in funds management and was growing its development pipeline to take advantage of its fully integrated property services delivery capability.

The Canberra purchase follows the successful closure in May 2003, of St Hilliers $60 million Australian Development Fund No 1 (ADF), which was established to cater primarily to institutional investors.

St Hilliers has delivered development, construction and property services to the Australian market since 1989, with current work in hand of more than $450 million comprising property under development and construction work in hand of $150 million.