Charter Hall sells Monash University Melbourne office building for a minimum of $60.2 million

30/06/2009 - PDF Version Available

Charter Hall Group (CHC) is pleased to announce that its Core Plus Office Fund (CPOF) has settled the sale of its 299 year leasehold interest in its Monash University, Parkville office complex to a private overseas based foundation. The total consideration from the transaction is $60.2 million which may be higher should confidential contract conditions favourable to the vendor be achieved.

The total consideration range to the vendor reflects a core market cap rate of 7.35% (after adjusting for the PV of fit-out rentals) and a maximum discount to the 30 September 2008 independent value of approximately 15%, which will be reduced if additional consideration is received. The disclosed cap rate for the 30 September 2008 valuation was 6.55%.

The sale of Monash University is part of an asset divestment strategy previously announced by Charter Hall to de leverage CPOF. The resultant gearing of CPOF is likely be approximately 50%, in line with recent announcements, following 30 June 2009 valuations and the use of sale proceeds to reduce debt.

Charter Hall's Joint Managing Director, David Harrison said: "The initiative to sell Monash University and other CBD fringe assets is supported by wholesale investors and recognises the desire to strengthen CPOF's Balance Sheet. With a 12% long term IRR target, CPOF will continue to seek acquisitions and divestment recycling that best positions the Fund to outperform its return hurdle".

The sale of the Monash University asset was facilitated by Jason Williams of 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).