This article is from the Australian Property Journal archive
Charter Hall has bought into a joint venture with Cape Bouvard over an office development in the Perth CBD.
Charter hall paid $6.5 million for a 50/50 joint venture over the development at 54-58 Mounts Bay Road.
The consortium has lodged a development application with the Perth City Council for a 20 storey, 19,000 sqm A-grade commercial office tower with car park for 96 cars.
Once Development Consent has been granted, construction is anticipated to commence early 2007 with completion scheduled for the third quarter of 2008.
The consortium is already in discussions with a number of prospective tenants.
Charter Hall’s joint chief executive David Southon said the project will capitalise on the strength of the Perth office market, which is experiencing historically high net absorption of office space and the lowest vacancy rates in the Country.
“Whilst demand has been fuelled in part by sustained, solid investment growth in the resources sector, the supply dynamic and record low vacancy levels have encouraged the potential speculative development of this site,” he added.
“The acquisition of the Mounts Bay Road property has further cemented our good working relationship with Cape Bouvard and is a sign of confidence in the long term strength of the Perth office market.
“Entering strong markets, such as Perth, with well respected, local partners like Cape Bouvard enables Charter Hall to access invaluable on-the-ground experience and facilitates strategic growth for both Groups,” Southon said.
The transaction is the third project secured for the Charter Hall Opportunity fund No.4, an unlisted, wholesale fund managed by Chartell Hall. CHOF4 was launched in July 2005, following a successful capital raising totalling $165 million and currently over 35% of this equity has been allocated to the three active projects within CHOF 4.
The latest transaction is the 16th off market transaction negotiated by Charter Hall during 2005/06.
Earlier this year, Charter Hall bought an office building at 181 St Georges Terrace from Cape Bouvard for the unlisted Charter Hall Diversified Property Fund.
By Adam Parsons
