Canberra's Garema Centre on Bunda Street on the market

Garema Centre, a prominent city building with frontage to Bunda Street and Garema Place, will hit the market next week.

The building at 70 Bunda Street is the third in the Garema precinct to be sold in the past 12 months.

A four-storey building at 50 Bunda Street sold for $9.8 million in May and a two storey-building at 25 Garema Place sold for $1.9 million in August.

Colliers International manager of investment services Matthew Winter said Garema Centre was expected to top the previous sales.

“Given that it’s a slightly large footprint on a rectangular site, directly opposite the Canberra Centre, it will be even more competitive than 50 Bunda Street,” Mr Winter said.

The building occupies a 1052-square-metre site and has “great development potential”, according to Mr Winter.

“The site is zoned CZ1, which may allow additional uses such as residential or hotel, subject to approvals,” he said.

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“This presents a significant long-term redevelopment opportunity and is likely to draw interest from local and interstate developers looking to convert the building into residential, hotel or potentially student accommodation.

“It will also appeal to private and interstate investors, as well as local syndicates, who are looking to acquire well-located assets with value-add opportunities.”

The building houses 12 restaurants and retail and office tenants including Chez Kimchi, Mussen Boutique and H&R Block.

Mr Winter said there was “scope to add significant value through repositioning, lease renewals and active management”.

A local syndicate has owned the building since the late 1980s and Mr Winter said it was looking to capitalise on strong market conditions.

Mr Winter said the sale of 50 Bunda Street, the home of the Academy nightclub and Shorty’s Bar, demonstrated the demand for CBD assets.

Expressions of interest close on Thursday, August 24.