Sydney-based Charter Hall Group’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 (US$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 expiry] 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 WALE of 7.5 years and provides an attractive investment proposition for both