Charter Hall's CHOF5 Acquires Commerical Site in Perth for $31 million
09/01/2008
Charter Hall Group is pleased to announce that Charter Hall Opportunity Fund No.5 (CHOF5) has secured a large, commercial development site on the edge of the Perth CBD for $31 million. This strategic site was acquired through John Corbett of Knight Frank from Chinoiserie Investments Pty Ltd.
The acquisition is the third for CHOF5 and follows two recent acquisitions in New Zealand. This latest project increases the equity allocated in CHOF5 to approximately $42 million of the $300 million of equity available in this fund.
The site is well situated close to the Perth CBD at 186 – 202 Pier and Nash Streets. The site is zoned for a range of uses including commercial and has a total land area of 10,129m2. Existing improvements consist of a substantial warehouse building over the majority of the site. The site is well serviced by public transport with Mclver Train Station only 50 metres away and Perth Central Train Station less than 500 metres. In addition, there is excellent vehicle network access with entries to the Mitchel, Kwinana and Graham Farmer Freeways within approximately 1.5 kilometres of the site.
Michael Winnem, Development Director and CHOF5 Fund Manager said: "The site will be redeveloped into a campus style, commercial office park with large efficient floor plates and have a total area in excess of 25,000m2 including ancillary retail and substantial car parking. This type of product will appeal to major corporate and government tenants who are focused on efficiency, productivity, value and environmentally rated accommodation".
This precinct is currently undergoing significant rejuvenation with a number of new developments under construction or planned for the area which will greatly enhance its appeal to a range of potential tenants. With the high levels of leasing activity and the strong economic conditions, the proposed development is anticipated to attract strong interest from users, particularly due to the lack of availability of quality, commercial office space close to Perth CBD.
Charter Hall's Joint Managing Director, David Southon said "The Perth office market continues to perform well with current office vacancy of less than 1%, positive employment growth and strong underlying demand for office space. The Perth business community is looking for well positioned and easily accessible office space close to the Perth CBD."
Just around the corner from the Pier and Nash Streets site, at 130 Stirling Street, Charter Hall is currently developing an 8 level (including car parking), 12,000m², A-grade office building for its Core Plus Office Fund (CPOF). The building has large floor plates ranging from approximately 2,600m² to 3,000m² and with the inclusion of an active chilled beam air conditioning system is designed to achieve a 4.5 star AGBR and 4 star Green Star rating. Leasing is well underway, with completion of this product due in June 2009.