Sydney-listed developer and fund manager Charter Hall has acquired a Sydney office building for A$229 million ($171 million; €152 million).
The firm has bought 105 Phillip Street, located in Sydney’s Parramatta central business district, from Dexus Property Group via a joint venture between the Direct Office Fund, Charter Hall’s unlisted property vehicle, and its managed Prime Office Fund, a wholesale pooled fund that has invested in 19 properties with a total portfolio valuation of A$3 billion.
The Direct Office Fund, which is invested in Australian office assets, has so far acquired 10 properties with a total valuation of A$1 billion.
The asset is currently under development and is expected to be completed by the second half of next year. The Grade A commercial asset, which will have a total net lettable area of 271,551 square feet, will be leased for 12 years to the New South Wales State Government’s department of education.
“The market is extremely competitive for high quality long WALE investment assets, particularly leased to blue chip tenants,” Adrian Taylor, group executive for office at Charter Hall Group, commented in a statement. “We see this investment, which extends our relationship with the NSW Government as a tenant customer, as an exciting opportunity to create another landmark office tower in Parramatta CBD, which will benefit from significant infrastructure upgrades and which is proving to be increasingly attractive to tenant customers.”
Charter Hall manages over A$19 billion of funds across office, retail and industrial sector.