Charter Hall strikes c$500m office stake deal
Charter Hall has sealed a $500 million deal for a 50 per cent stake in Sydney’s ‘O’Connell precinct’.
The seller was the Abu Dhabi Investment Authority.
It has held the asset – five properties – with Lendlease Australian Prime Property Fund since 2005.
Anchored by a 37 level, 58,000 square metre office, 1 O’Connell Street, with a long weighted average lease expiry, the portfolio returns just over c$50m per annum net.
Also bound by Bent and Spring streets, part of the landbank, 19-21 O’Connell St, incorporating heritage buildings, is earmarked for another office, of c72 levels or 310 metres.
Another tower could be considered for the 6117 sqm freehold site after that.
Alternatively sources say, Charter Hall and Lendlease, which retains the balance of the precinct, might propose one skyscraper on a larger footprint (continues below).
CBRE’s Flint Davidson, Stuart McCann and James Parry with JLL’s Luke Billiau, Kate Low and Verity-Wyatt Budd were the agents.
The sale was mooted November.
Elsewhere in Sydney, Charter Hall with GIC is developing a premium tower, Chifley South, set to contain 64,654 sqm over 38 floors, part pre-committed to UBS.
ADIA meanwhile recently shed its interest in Gold Coast’s Paradise Centre and a Novotel Hotel, for $370m to Forest Endeavour, controlled by Taiwan’s billionaire Lin family, also owner of Shayher Group.
That asset was held with Challenger Life Company.
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