Charter Hall Group Crystallises first result for Charter Hall Opportunity Fund No.4
12/07/2006 - PDF Version Available
Charter Hall Group has achieved its first result for its latest unlisted opportunity fund, Charter Hall Opportunity Fund No.4 ('CHOF4'), entering into an unconditional contract for the sale of 420 George Street in Brisbane.
The property, on the corner of George and Tank Street, was purchased by the
wholesale opportunity fund, CHOF4, with a view to refurbish, re-lease and divest.
However, in an off market transaction, CHOF 4 will on sell the existing 6,400m², 13 level commercial building, un-refurbished, to Ross Nielson Properties.
Charter Hall recently secured development consent from Brisbane City Council for the proposed upgrade works, refurbished one floor for marketing purposes and commenced a leasing campaign. The George Street property, formerly owned and occupied by the National Australia Bank, was purchased by Charter Hall from Indigo and Spartan in September 2005.
'We are very pleased to be in a position to crystalise an outstanding result for our
unlisted unit holders, some 10 months ahead of schedule. The option to on-sell
properties within CHOF 4 to maximise unit holders' return is consistent with the Fund's investment mandate. The sale represents a timely and secure return to investors with all market and leasing risk eliminated' according to Charter Hall's Joint CEO, David Southon.
The 420 George Street redevelopment was the first project secured for CHOF4, which is the fourth in the series of unlisted, wholesale, opportunity funds managed by Charter Hall.
Charter Hall remains very positive about the outlook for the Brisbane CBD office
market, with CHOF4 having two other substantial projects in the market, being
Northbank Plaza with 26,000m² of refurbished A-grade office space and the adjoining site which could accommodate a new office tower.
CHOF4 has secured four projects in under 12 months and has allocated over 55% of
the Fund's $165m of equity. Returns to Charter Hall Group from this project through its co-investment in CHOF4, Development Management Fees and Performance Fees are consistent with the Group's FY07 projections contained in the most recent PDS.