Charter Hall acquires Monash University Office Campus in Melbourne for $63.5 million

22/10/2007 - PDF Version Available

Charter Hall, one of Australia's leading property fund managers and property developers,announces that its Core Plus Office Fund (CPOF) has acquired two Monash University buildings in Parkville, Melbourne for $63.5 million.

The property is being purchased on an expected fully leased initial yield of 6.1% from the Plenary Group and is currently 70% leased to the Monash University for 25 years. Monash University is amember of the Group of Eight (Eo8) and one of Australia's most recognised Universities. 

Located at 395-405 Royal Parade in Parkville and only 2kms from the CBD, the property occupies a land area of approximately 4,870m2, comprising two buildings totalling 13,200m2, which have recently been constructed or refurbished. The buildings also provide for 125 carparking bays. 

Under the agreement, the vendor will complete the refurbishment works, while Charter Hall willfinalise the leasing of the remaining uncommitted areas representing approx 25% of the lettablearea.

David Harrison, Charter Hall's Joint Managing Director said: "The Monash university 25 year lease and rent reviews indexed to inflation with 4.06% per annum minimum increases, further enhances the CPOF average lease term from 9.2 to 9.6 years. 

This acquisition also builds on the tenancy profile strength within the portfolio which boasts long term leases to Telstra, St George Bank, AMEX and BHP".

The acquisition further demonstrates our confidence in Melbourne's emerging rental growth prospects off a remarkably relative low base compared with other capital city markets.

This latest acquisition is the second core plus office acquisition for CPOF in Victoria and bringsthe Fund's assets to 13 with a total portfolio value of approximately $1.18 billion.

Chris Forbes, CPOF Fund Manager said: "The acquisition also provides scope to enhance returns through the leasing of uncommitted areas and demonstrates the Fund's ability to deliver on a broad range of investment opportunities".

The transaction was negotiated by Jason Williams and Julian Polic from Grant Samuel.


This information has been prepared by Charter Hall Funds Management Limited ABN 31 082 991 786; AFSL 262861 ("CHFML") for information purposes only. This website is not an offer to sell or a solicitation or an offer to subscribe or purchase or a recommendation of any securities referred to herein and the information has not taken into account any potential investors' personal objectives, financial situation or needs. Before investing, you should consider your own objectives, financial situation and needs or you should obtain financial, legal and/or taxation advice.

CHFML does not receive fees in respect of the general financial product advice it may provide, however they will receive fees for operating the schemes of which it is the responsible entity ("Schemes") which, in accordance with the Schemes' Constitutions, are calculated by reference to the value of the assets of the Schemes. Entities within the Charter Hall Group may also receive fees for managing the assets of, and providing resources to the Schemes. For more detail on fees, see our latest annual report. To contact us, call 1300 365 585 (local call cost).