Charter Hall buys Sydney office building for $377m
Australia-based Charter Hall’s Core Plus Office Fund has formed a wholesale trust with an investment vehicle sponsored by Morgan Stanley Real Estate Investing to purchase 1 Shelley St. in Sydney for A$525 million ($377 million).
The property is a prime office building located adjacent to the south side of Barangaroo. The office component is 100 percent leased to ASX-listed Macquarie Group, with the parking facilities leased to Secure Parking.
“The acquisition of 1 Shelley St. secures for CPOF a strategic property in Sydney’s fastest growing office precinct, improving the WALE [weighted average lease expiration] and average building age of the CPOF portfolio, whilst also improving the average rental growth profile for the fund, with 1 Shelley St. featuring annual 4 percent increases,” said Craig Newman, Charter Hall’s CPOF fund manager, in a statement
The site is secured with a weighted average lease expiration of 7.5 year