Terry Snow's Capital Property Group will build a $150 million office development in the city centre, after snapping up a prime block of land.
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The group has purchased the block on the corner of Vernon Circle and Constitution Avenue from the ACT government for $17.75 million.
Capital Property Group plans to develop a six-storey office building on the site, with construction set to begin in mid-2024.
It will sit next to the group's Constitution Place precinct, which the group partially sold for $275 million in 2022.
The new building is expected to be completed by the second half of 2026 and is promised to be 100 per cent carbon neutral in operation.
Capital Property Group CEO Stephen Byron said the new office building would build on the success of Constitution Place.
"This new development will provide high-quality, centrally located office accommodation to meet the city's growing needs," he said.
The sale came after a two-stage tender process, managed by JLL.
Capital Property Group had eyed the site for some time, Mr Byron said.
The purchase was the "culmination of a journey that began in April 2016" when the group put in the tender for the Constitution Place development, he said.
'Significant' tenants already eyeing the office
The new office building would suit public and private sector tenants and would eventually house about 1000 employees, Mr Byron said.
"We've got our eye on a couple of key tenants and we know there are a couple of significant corporates that have got their eye on this opportunity with us," he said.
ACT Chief Minister Andrew Barr said the high-quality, sustainable development would "further enliven" the culture district planned for the city centre.
"This will breathe further life into our city - helping to bring people together, support local business and encourage more private investment," he said.
Mr Barr said he wouldn't rule out the ACT government looking for more office space in the Constitution Place precinct.
"We may in the future ... at this point our immediate needs are met, but I wouldn't rule it out," he said.
Building to target five-star rating
The project will offer 14,000 square metres of office space and have a strong emphasis on sustainability.
Mr Byron said the development would target a five-star energy rating under the National Australian Built Environment Rating System and a gold rating under the WELL Certification for health and wellbeing.
Mr Byron said the building would also be 100 per cent carbon neutral in operation thanks to a 99-kilowatt roof-mounted solar array and no gas plant.
"In addition the building is proposed to have a hybrid timber construction where part of the building structure and fabric will built from sustainable timber, further reducing the building's carbon footprint," he said.
A two-level basement with 86 car parks was also proposed.
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Capital Property Group will work with architect Bates Smart and building firm Construction Control, the team behind Constitution Place, on the new building.
The project will be located next to the Canberra Theatre, which is set for a major redevelopment.
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