GPO Exchange: Delivering the next generation of smart buildings right-arrow
ICONS - OFFICE
Sector

Office

ICONS - HISTORY
Timeframe

Construction commenced in September 2017 and completed in October 2019

CHARTER HALL ICONS_COMPLETION VALUE coloured 708 x 708
Total investment

$260 million

Charter Hall’s GPO Exchange has redefined an iconic commercial landmark in Adelaide to deliver the next generation of smart buildings. Creating a revitalised precinct in the heart of the CBD, it sets a new benchmark for development innovation in South Australia and nationally.

The development consists of a prime office tower integrated with the adaptive reuse and restoration of the heritage-listed Telephone Exchange building and a new laneway precinct. What sets GPO Exchange apart is the advanced technology masterplan with Australia’s most integrated systems and data platform, intelligent infrastructure and design. Exceptional integrated fit-outs include a state-of-the-art integrated remote operations centre for BHP breaking new boundaries for workplace innovation.

Highlights

  • Leveraged the expertise of our integrated platform in development, investment, asset and property management
  • Continued to enhance the quality of Charter Hall’s Prime Office Fund (CPOF) with the development of a premium grade, technologically advanced asset located in a prime CBD location
  • Secured substantial pre-lease commitments with strong corporate and government covenants
  • Extended our relationship with BHP and increase our portfolio weighting to the Government sector
“Our employees are proud to see the BHP logo on Adelaide’s best building in this iconic location, lighting up the heart of the CBD. We’re already seeing and feeling a lift in energy and a positive shift in our culture to support a growing, diverse workforce.”

Laura Tyler, BHP, Asset President Olympic Dam

GPO Main I

How does it relate to our business objectives?

  • This transaction is in line with our strategy of investing in core CBD office properties.
  • Charter Hall has a long-standing focus on long WALE leases to quality tenant customer covenants. We leveraged our partnership approach and cross-sector relationships to secure substantial pre-lease commitments from BHP and a Government Department, with the development 94% committed prior to opening.
  • Building resilience continues to be a core theme, with Charter Hall focused on partnering with our blue-chip corporate and government customer base to grow and protect investor capital.
  • This high quality addition to the CPOF portfolio has created significant value, enhanced income yield and total returns for CPOF investors along with an increased NTA uplift to the Fund from cap rate compression.
  • This transaction demonstrates our capability and leadership in the office sector. Our development activity drives our funds under management growth, with our office development pipeline now over $4 billion nationally.
GPO Main I
“The move to GPO Exchange is more than a change of address. It represents a change in the way we work and is already helping to promote more collaboration. It really is an impressive building, the facilities are first class, it’s a credit to everyone involved in the design and construction.”

Caroline Mealor Chief Executive, Attorney-General’s Department

 

“GPO Exchange is a transformative South Australian project, which has set a new benchmark for a modern workplace in the state, providing our tenant customers with an unrivalled work experience. The GPO development has further enhanced the Charter Hall Prime Office Fund’s portfolio quality and total return metrics and delivered our Fund investors a coveted new Premium Grade office building in the Adelaide CBD core office precinct."

David Harrison, Managing Director and Group CEO of Charter Hall

What did we exemplify?

We have an integrated approach to development and asset management, and work towards achieving excellence in sustainability and workplace design.

GPO Exchange is a great example of our in-house development expertise
– from origination to planning, design development and into delivery
– combined with our integrated asset management and property management capability.

As one of Australia’s smartest commercial buildings, this development also exemplifies our commitment to excellence in sustainability and workplace innovation. Partnering with anchor tenants BHP and the Attorney General Department to deliver their custom-designed integrated fitouts was key to delivering a successful outcome and creating long-term growth and enhanced value for investors.

How did we go further?

We continue to put our customers first. Our two major pre-commitment tenant customers at GPO Exchange were at the forefront of every major decision on the project. From partnering with BHP to deliver their integrated remote operations centre, to the creation of a new wintergarden space on Level 16 for the Attorney General’s Department, at every point, our focus was on the best outcome for our tenant customers.

FY20 Reporting Suite

At Charter Hall we believe in going above and beyond. In doing more to help our tenants, investors, our people and the communities we operate in realise their full potential.

View our FY20 Reporting Suite

CHC-Annual-Report