8-year lease at 1 Nicholson St, Melbourne CBD
One of Australia’s largest investors of investment-grade office buildings, Charter Hall Group, today announced its market leading Direct Office Fund (DOF) has leased several floors at 1 Nicholson Street, on the northern edge of Melbourne CBD for an 8-year term.
Market leading water treatment and chemicals company, Ixom, has leased three levels of 1 Nicholson Street, Melbourne.1 Nicholson Street is an iconic and architecturally significant Melbourne building, being the first glass wall skyscraper built in the city. It is located opposite Parliament Gardens at the intersection of Lonsdale/Albert and Nicholson/Spring Streets with commanding views and natural light throughout.
Head of Charter Hall Direct, Steven Bennett said: “We are pleased to partner with an existing customer to deliver property solutions that meet their individual business requirements and create value.
“We are excited that Ixom will continue to be located at the iconic 1 Nicholson Street building, and that they value the quality of the building and its strategic location in one of the most desirable precincts of the city,” Mr Bennett said.
DOF currently comprises 10 office buildings in Sydney, Melbourne, Brisbane and Perth with a total value as at December 31, 2016 of $1.025 billion.
DOF is currently open to investors who can expect to earn 6.25% per annum income distribution with the prospect of capital growth and the advantage of partial tax deferred tax returns.
DOF returned 15.9% pa in the 12 months to 31 December 2016. This compares to the benchmark return - the MSCI/IPD Australian Unlisted Wholesale Property Fund Index - of 11.1% over the same period.
“DOF is a flagship fund for the Charter Hall Direct business. Its key characteristics of long WALE (weighted average lease expiry), 100% occupancy, exposure to the strategic markets of Sydney and Melbourne accounting for over 75% of the fund’s portfolio, conservative gearing, and high quality tenants, is emblematic of the Charter Hall approach to property investing and a reason for our ongoing success,” Mr Bennett added.
1. Yield based on the December 2016 quarter distribution (annualised) of 7.75 cents per Unit and the 1 January 2017 unit price of $1.24. Distributions for future quarters may vary. To obtain current unit pricing visit www.charterhall.com.au/dof-unitprice
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