Charter Hall Secures Victorian Government For 12,780sqm Of Office Space

Charter Hall Group's (ASX:CHC) Core Plus Office Fund (CPOF) is pleased to announce it has executed a new lease with the State Government of Victoria at 570 Bourke Street, Melbourne for 12,780 square metres. The agreement follows the fund's recent purchase of the remaining 50% of the building for $76.5 million from the Perron Group.

The lease agreement will see the Victorian Government continue to lease approximately 36% of the building on a new five year lease term, increasing the building's weighted average lease expiry (WALE) from 2.5 years to 4.1 years.

Mr David Harrison, Charter Hall's Joint Managing Director, said: "The agreement with the Victorian Government reinforces our strong relationships with tenants and is also an important endorsement of the building's quality and location."

Mr Chris Forbes, CPOF's Fund Manager, said: "CPOF is currently upgrading the entire building in line with our commitment to delivering sustainable office buildings for our tenants, with the aim to achieve a 4.0 Star NABERS Energy rating and a 3 Star NABERS Water rating."

Building upgrade works are scheduled to be completed progressively over the next twelve months and includes the installation of energy efficient light fittings, modernisation of the building control systems and the replacement of the majority of the building's mechanical plant.

An A-grade commercial office building, 570 Bourke Street comprises 33,089 square metres of office space and a 522 bay parking station, comprising both tenant and public car parking.

CPOF is a wholesale office property investment fund managed by Charter Hall which owns 16 investment grade assets located throughout Australian office markets.