Charter Hall drops offer for Nine’s Sydney, Melbourne studios: sources

Charter Hall is believed to have dropped its offer for Channel Nine’s outgoing Richmond television studios by c$20 million.

Sources say the group, which agreed to buy the Bendigo Street site with R. Corporation and Crane Corp late last year, is now seeking to pay $60-$65m.

The three hectare property has housed the network since 1956.

Charter Hall is also understood to have lowered its bid for the network’s Sydney (Willoughby) studio – from $120m to between $90-$95m.

This would mean, Nine, controlled by private equity firm CVC Asia Pacific, may pocket just $150m for assets valued at $200 million six months ago.

It is speculated the network would still take the lower amount because it is unlikely to receive a higher bid.

The timing of the listing has been affected by the credit crunch – limiting developers and institutions which compete at this price point.

Representatives from Charter Hall, on behalf of the development consortium, PBL Media/Nine, and the marketing agents – Colliers International’s John Marasco and Tim Bolton, declined to comment.

The media group is planning to relocate its Melbourne studio to Docklands.

Share or Recommend article

Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.

Leave a Reply

Your email address will not be published.