Charter Hall Wholesale Fund Acquires $76.5 million Melbourne CBD Office Building

Charter Hall's Core Plus Office Fund (CPOF) is pleased to announce it has agreed to acquire the remaining 50% of 570 Bourke Street, Melbourne for $76.5 million from the Perron Group. 

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

The property was purchased on a passing yield of 8.86% based on current passing income. 

David Harrison, Charter Hall's Joint Managing Director said: 'This significant transaction follows CPOF's successful equity raising, which to date has secured approximately $100 million, and 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.' 

CPOF is a wholesale office property investment fund managed by Charter Hall and owns 16 investment grade assets located within Australian core CBD office markets.