This article is from the Australian Property Journal archive
THE New South Wales government has leased the remaining 8,600 sqm at Charter Hall’s The Glasshouse building, taking the Macquarie Park complex to full occupancy.
Charter Hall’s ASX-listed Long WALE REIT (CLW) and unlisted PFA Fund acquired The Glasshouse, at 45-61 Waterloo Road, in November of 2019 from John Holland for $165.7 million. At the time it was under construction with 73% pre-committed to the state government’s Transport for NSW on a 12-year lease, and with a three year rental guarantee over the remaining space.
The new lease over levels seven and eight of the building will be co-terminus with the existing government lease, meaning the NSW government occupies the property’s entire office component with a remaining lease term of 10.8 years.
The Glasshouse has 34,099 sqm of office space and a retail component, and reached practical completion in March 2020. It is part of John Holland’s Macquarie Square development, encompassing a 117,017 sqm site with five buildings and a 7,000 sqm public park.
CLW fund manager, Avi Anger said the lease agreement improves the income security and lease expiry profile of The Glasshouse, which now has a weighted average lease expiry in excess of 10 years.
The building is projected to achieve a 5 star NABERS rating and 5 Star Green Star Design and As Built ratings.
This transaction also increases the proportion of income from government tenants in the CLW portfolio by net income to 16%.
