Charter Hall acquires a $10.3 million Sydney suburban office investment

31/05/2007 - PDF Version Available

Charter Hall Group announces it has acquired a $10.3m office investment in the Sydney lower North Shore suburb of Cremorne, for the Charter Hall Diversified Property Fund (DPF). The boutique office building is located at Glover Street, Cremorne Junction and is fully leased to multinational group EMI Music Australia Pty Ltd. EMI have been a strong covenant and occupied the building for approximately 10 years. EMI have a lease until 2011, with a further option to renew.

The EMI building was built in 1987 and comprises three levels of office space with security parking for 56 cars, futher benefiting from Sydney Harbour views. The building provides large courtyards and balconies to each level.

The acquisition was negotiated off market by Jones Lang la Salle and reflects an initial yield of approximately 8 percent.

The DPF portfolio will now comprise of 10 properties valued at approximately $118 million. The DPF portfolio is diversified among office, industrial and retail bulky good sectors located within NSW, VIC, QLD and WA.

The acquisition increases DPF's NSW weighting to approximately 20 percent (up from 12 percent) in an improving Sydney office market and increases weighting to the office sector to approximately 40 percent (up from 36 percent). The weighted average lease expiry across the portfolio is approximately 11 years.

Executive Director Cedric Fuchs said "DPF will continue to focus on growth markets across Australia and invest in office, retail and industrial properties, generally in the range of $5 million to $30 million in value".


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