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Charter Hall Group (Charter Hall or the Group) is pleased to announce the acquisition of a $290 million, A-Grade office tower in the heart of the Canberra CBD at 21 Genge Street. Leased to our long-term tenant customer, the Commonwealth Government, the asset is occupied by the Australian Tax Office (ATO) and the Department of Veteran Affairs. The 42,000 square meter (sqm) twin tower development with a 5-year WALE, reflects a 7.5% initial yield.
This Charter Hall-managed partnership is owned by the $10 billion flagship wholesale office fund CPOF, together with Charter Hall Group. The investment strategy is to extend the WALE of the asset and take advantage of the modern buildings’ large floorplates and ideal location directly opposite the 260-retailer Canberra Centre shopping centre.
Charter Hall Office CEO, Carmel Hourigan, said, “We welcome two of our major existing customers to the $30 billion office portfolio and look forward to adding value to the building for their benefit.
“Canberra’s office market is one of Australia’s most resilient office markets with low vacancy rates for prime stock, while large floor plates within a two-tower complex provides flexibility in meeting customers’ needs.”
Charter Hall Managing Director and Group CEO, David Harrison, added, “CPOF continues to curate its portfolio with modern office assets leased to blue chip customers. The relatively high passing yield provides enhanced distribution yields and total returns, while further enhancing resilience in the overall portfolio. The Group also sees deep value and has added this investment to its balance sheet of co-investments to drive earnings growth and incubate for future partners.”
21 Genge Street holds strong sustainability credentials, including carbon neutral certification and 5 star NABERS Energy rating. It joins CPOF’s internationally recognised position as a Global Sector Leader in the 2022 Global Real Estate Sustainability Benchmark.