Charter Hall sells 50% Alluvion stake to Commonwealth Property Office Fund for $95 million

23/11/2009 - PDF Version Available

ASX/Media Announcement

Charter Hall sells 50% Alluvion stake to commonwealth property office fund for $95 Million

Charter Hall Group (CHC) announces that Charter Hall Opportunity Fund No. 4 (CHOF4) has contracted to sell its 50% stake of Alluvion following completion in April 2010 to Commonwealth Property Office Fund (CPA) for $95 million.

Located in the heart of Perth's CBD at 58 Mounts Bay Road, Alluvion comprises 21 levels of A-grade commercial office space with 22,395m2 of Net Lettable Area and car parking for 96 cars.

Alluvion has been designed to achieve a 4 Star Green Star rating and a 4.5 star NABERS Energy rating. Alluvion is 100% leased to a range of high quality tenants including Clough, Northwest, Euroz, Savills and Cape Bouvard Investments (CBI). Lease terms range from 7–12 years with a forecast WALE of 11.7 years. The remaining 50% stake in Alluvion is owned by CBI.

David Southon, Charter Hall's Joint Managing Director said: "Alluvion represents the delivery of another well leased, high quality commercial office building by Charter Hall, in this instance together with our joint venture partner, CBI. We have agreed to sell CHOF4's 50% interest in Alluvion to CPA, which secures the capital realisation from this project and achieves a gross internal rate of return on equity in excess of 25%, within challenging market conditions. There is a growing appetite for well leased, quality office assets from both on and offshore buyers, which Charter Hall remains well positioned to capitalise on across the opportunistic platform within its business".

The sale of Alluvion was negotiated off market by Paul Craig and Miles Rowes from Savills.


Ends

For further media enquiries or to arrange a media interview, please contact:

David Southon
Joint Managing Director
0418 479 155
davids@charterhall.com.au

Jo Stiles
Marketing & Communications Manager
0414 499 199
jos@charterhall.com.au


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).