Charter Hall has picked up two government-backed offices from private developer DOMA on a blended 5.2 per cent initial yield.
In the biggest deal, the manager is paying $146 million for a recently completed commercial building at 6 Stewart Avenue, Newcastle.
Over 12 storeys, with 15,000 square metres of area, the asset will be held in equal shares by the Direct Long WALE Fund (LWF) and Direct PFA Fund.
The state government’s Hunter Development Corporation is the anchor occupier.
Yesterday we reported LWF spent $25.9m on a supermarket investment in Sydney’s Five Dock.
In Canberra, Charter Hall is paying $99m for 18 Canberra Avenue (pictured, top), which is occupied by the commonwealth government’s Services Australia.
Also known as the Doris Blackburn Building, the four-storey office contains 9630 sqm of A-grade area (story continues below).
It will be by held by the Prime Office Fund (CPOF).
“We are pleased to extend CPOF’s relationship with Services Australia through this acquisition following its 28,000 sqm pre-lease of our new 60 King William Street, $450m complex, in Adelaide,” fund manager and Matthew Brown said.
“This [Canberra] building is a well-located, modern, purpose-built asset that aligns well with our strategy of acquiring properties leased to high-quality tenants on long-term leases and meets our high standards for sustainability,” according to the executive.
Charter Hall head of transactions, Ben Ellis, added its two new offices extend the group’s “long term track record of securing more than 50pc of our acquisitions off-market across all sectors”.
Colliers’ Paul Powderly represented DOMA.
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