Charter Hall acquires major CBD property for $90.7 million

18/06/2007 - PDF Version Available

Macquarie House is a 19 level office building with a total net lettable area of 9,734m2, consisting of two ground level tenancies, a private club which occupies the premises from the ground floor to level 6 and 12 upper floor office levels.

The property is currently 87 percent leased to strong covenants including Fidelity, Next Financial and Gresham. Charter Hall has secured agreement on all remaining vacant office space and expects the building to be 100 percent occupied in the short term.

The new acquisition is a core investment and the 10th asset in CPOF, bringing the Fund's total assets committed to approx $825 million. The latest acquisition reflects an initial yield of approximately 7 percent.

Charter Hall's CPOF Fund Manager, Chris Forbes said: "The acquisition of Macquarie House provides CPOF with further exposure to the strong growth prospects expected from a Sydney CBD financial core location. CPOF has secured an excellent exposure to the high growth office markets of Sydney, Brisbane and Perth."

The property was acquired from the Industry Superannuation Property Trust (ISPT). Peter Whitaker, Divisional Director of Capital Transactions at Savills negotiated the off-market transaction.

Charter Hall's Joint Managing Director, David Harrison said: "The property reinforces Charter Hall's ability to source off-market transactions and offers CPOF the opportunity to take advantage of the forecast rental upswing, solid long term rental growth and prospects within Sydney CBD."


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