Geocon secures Bega Flats site in Reid at auction for $38.5 million

The final component of Civic’s former ABC Flats has sold for $38.5 million to local developer, Geocon.

The developer, which is behind more than 30 per cent of apartments sold in Canberra, will develop the 11,712-square-metre block in Reid into a “mini precinct-style development” with about 500 dwellings, according to managing director Nick Georgalis.

The Bega Flats site, directly opposite the Canberra Centre, attracted interstate and international interest, but in the end it was seven local developers who registered to bid for the site.

LJ Hooker Commercial agent Greg Lyons said the result demonstrated that “local players wanted to control the Canberra market”.

“It came down to very strong local players who put out a battle at the end and we’re delighted with the result,” Mr Lyons said.

The redevelopment of the “ABC Flats”, comprising the Bega Flats, and the neighbouring Allawah and Currong buildings is part of the ACT government’s public housing renewal program.

The 25,630-square-metre Allawah and Currong site sold at auction in February 2016 for $47 million.

• Related: Braddon site sold for $47m
• Related: Lyneham site sold for $45m
• Related: Bega Flats site to be auctioned

City Renewal Authority chief executive Gary Rake said the sale of the Bega Flats site was a great outcome for the city.

“It helps fund the replacement of public housing,” Mr Rake said.

“We get new development in the city and we get more dignified, appropriate public housing for our public housing tenants.”

Most of Bega Flats’ tenants have already moved out of the complex and settlement is planned for 2018.

The development will add to the Geocon’s extensive list of buildings throughout the city, which include Midnight in Braddon, Wayfarer in Belconnen and Infinity in Gungahlin.

“We know that there is enormous demand in the city for this type of development,” Mr Georgalis said.

“What we have here is a site located on Glebe Park, one of the better locations in the ACT. It is in the quieter end of the city and there’s an enormous demand from downsizers, first home buyers and certainly investors in the market for anything that is as well located as this property.”

Mr Georgalis said Geocon was keen to develop the site as soon as possible.

“We’ll be commencing construction the day we settle,” he said.

“We’ll lodge a DA shortly and commence marketing immediately. Building up the pipeline is key to the business’ success and we’re seeing our pipeline cleared very quickly, year in, year out.”