This article is from the Australian Property Journal archive
THE Charter Hall Core Plus Office Fund has bought out its joint venture partner’s 50% stake in 570 Bourke Street, Melbourne.
The Perron Group sold has sold its half share in the 30 level building for $76.5 million.
The property was purchased on a passing yield of 8.86% based on current passing income.
Charter Hall’s joint managing director David Harrison said this significant transaction follows CPOF’s successful equity raising, which to date has secured approximately $100 million.
CPOF is a wholesale office property investment fund managed by Charter Hall and owns 16 assets within the Australian CBD office markets.
“This demonstrates Charter Hall’s ability to acquire strategic investment grade assets for its funds in core markets such as Melbourne’s CBD.
“We continue to position the CPOF portfolio in markets where expected market rental growth and below market rent passing income on selected assets combine to provide strong leverage to the improving office cycle,” he added.
570 Bourke Street is an A-grade commercial office building and comprises 33,089 sqm of office space and a 522 bay parking station comprising both tenant and public car parking, on a 3,268 sqm site.
The building is 96% leased to major tenants including the Victorian State Government, ANZ, Willis and Allianz, and has a weighted average lease expiry of 4.1 years upon settlement.
It is currently returning a net passing income of $13.563 million pa.
Work is currently underway to retrofit the property targeting a 4.5 star NABERS Energy rating.
Australian Property Journal
