Office space at Workzone is being rented at about $600 per annum per square metre, according to The Australian.

According to the Property Council of Australia’s most recent Office Market Report (stock and vacancy report), vacancy in the Perth’s CBD office sector fell to 7.8 per cent, from 10.2 per cent.

Brisbane was another strong performer. Vacancies in that CBD fell to 7.4 per cent, from 9.4 per cent. Australia’s biggest capital city, Sydney, reported an 8.4 per cent vacancy, according to the PCA.

The site is on Mounts Bay Road in Perth’s financial district.

Savills Western Australian office negotiated the sale.

CPOF and Telstra Super have purchased 100% of the 57,300 square metre building from Westscheme, with settlement scheduled for mid November 2010.

Brisbane Square, completed in 2006, is an A-grade office building located in the north quarter precinct of Brisbane’s CBD. The building occupies a whole city block that borders Queen Street, George and Adelaide Streets, at the top of the Queen Street Mall, and has expansive views of Brisbane River. Offering 37 levels of office space and 1,270 square metres of retail, Brisbane Square is 100% leased to high quality tenants including Brisbane City Council and Suncorp-Metway, and has a weighted average lease expiry of over 10 years.

Mr David Harrison, Charter Hall Group’s Joint Managing Director said: ‘This acquisition is one of Australia’s largest single asset transactions this year. Brisbane Square provided an ideal opportunity to purchase a well located, CBD prime office building with strong financial covenants at an attractive price of $5,200 per square metre of lettable area and potential capital growth given the passing rents are approximately 38% below market levels.’

Telstra Super CEO, Mr Martin Crowe said: ‘Telstra Super was attracted to Brisbane Square by its quality and sustainable investment returns. The return profile, comprising secure income streams and capital growth capability, is very much aligned with the objectives of our members.’

CPOF is a wholesale office property investment fund managed by Charter Hall which owns 15 investment grade assets, valued at $1.2 billion, located within Australian core CBD office markets.

Charter Hall is one of the largest specialist real estate fund managers in Australia and will have assets under management in excess of $A10b once the transaction is completed.

The Platform consists of the following real estate funds:
•    Macquarie Office Trust (ASX:MOF);
•    Macquarie CountryWide Trust (ASX: MCW);
•    Macquarie Direct Property Fund (MDPF);
•    Macquarie Martin Place Trust (MMPT); and
•    Macquarie Property Income Fund (MPIF) (together the “Funds”).
As part of the Platform, CHC will also acquire the asset service and property management businesses that support the Funds as well as a portion of Macquarie’s co-investment holdings in three of the Funds. Macquarie will retain shareholdings of 6% and 4% in MOF and MCW respectively.

Mr Nicholas Moore, Macquarie Managing Director and Chief Executive Officer said:
“Consistent with our strategy regarding the listed specialist funds business, Macquarie has undertaken a process to explore alternatives in relation to the future of Macquarie’s Australian real estate platform and maximise value for investors. As a result of this process, Macquarie has identified Charter Hall as a partner with a specialised real estate capability which Macquarie believes will be attractive for Fund stakeholders.”

After taking into account the historical cost of the management businesses and the investments in the Funds, as well as other transaction related costs, the net impact to Macquarie’s FY10 profit is expected to be approximately $A30 million.

K-REIT Asia (Australia) Trust has made its first foray into the commercial property market, according to the Herald Sun, buying into the 30-level, 40,317 square metre fully leased office.

Charter Hall was the vendor.

Sydney based asset manager Charter Hall has paid $32.5 million for the Lansell Plaza shopping centre at Kangaroo Flat, about eight kilometres south west of Bendigo.

The purchase, from Centro Group, is expected to settle at the end of January.

On 8.8 hectares, the mall (black and white image from the National Gallery of Victoria) reportedly sold on a yield of 9 per cent.

With a 40.2 metre frontage to Bourke Street, the building is expected to arouse interest from residential developers. The site has also previously mooted as a potential hotel.

The purchase of the asset nearly four years ago tipped the value of Charter Hall’s national portfolio beyond $1 billion for the first time. It is now being marketed by Colliers International’s Leigh Melbourne and Nick Rathgeber with Savills Clinton Baxter and Dominic Long.

Sources say R.Corporation will team with Crane Corporation and Sydney-based developer and fund manager Charter Hall to develop the site into high rise apartments, townhouses and retail space.

It’s understood Charter Hall will also purchase the network’s Willoughby studios on Sydney’s north shore in a deal worth about $120 million, however this could not be confirmed.

The 3-hectare site at 22–56 Bendigo Street in Richmond includes more than 30 buildings, some of which are heritage protected. The site has a wide frontage to Stawell Street, Khartoum Street, Jago Street and Weitheim Street and has been used as the Melbourne studio for the television network since 1956.

Currently zoned Industrial 1, the site is expected to be rezoned Residential next year, which would pave the way for a major redevelopment.

A representative from R.Corporation declined to comment on any negotiations when contacted by The Age. Spokespeople from Consolidated Media, Charter Hall and Crane Corporation failed to return calls.

Colliers International’s eastern office chief executive Rob Joyes, who is marketing the Richmond property, denied Consolidated had yet entered the due diligence process with any specific contender.

However, well placed sources say negotiations are advanced on the site, considered one of the best infill development sites offered in Melbourne for years.

Groups understood to have tendered on the Richmond site include Australand, Mirvac and Devine Limited. Private investors including Lindsay Fox and Paul Little are also believed to have thrown their hat in the ring.

Consolidated Media has issued an 11,000 square metre leasing requirement in Melbourne’s inner-city, with a site in Docklands widely tipped to become the Nine network’s new home. The network is also looking for around 25,000 square metres of office and studio space in Sydney’s western suburbs.

It’s believed offices in both cities must be available by mid-2009, which limits the company’s accommodation options to existing buildings or sites currently under construction.

R.Corporation, the private development company of former banker Andrew Rettig, has been flexing its development muscle in Melbourne over the last few years, developing more than 20 landmark buildings into boutique residential, retail and office projects totalling around $600 million.

Its biggest project to date is the Botanicca Corporate Park in Richmond which it developed with Macquarie Bank into offices.

Nearby, it has developed the former Victoria Brewery site in East Melbourne into Tribeca, a mixed use retail and residential project. It teamed with Babcock & Brown and Red C to develop the $240 million project.

Part of the site was subsequently rezoned and subdivided to create the Aquilo residential development. Charter Hall purchased the 3.3 hectare Aquilo site from the joint venture in December 2008.

All up, it’s been reported Charter Hall outlaid about $10 million for the Mentone site.

The property abuts a prominent bulky goods complex, which includes as tenants Bunnings, Retravision and Supercheap Auto.

Charter Hall joins a growing list of interstate based developers including Mirvac, Stockland, Sunland and Walker Corporation, building major projects in Melbourne’s outer suburbs.

Charter Hall is co-directed by David Harrison, who for several years before quitting agency in 2005 was considered Australia’s most successful commercial realtor, based on the value of sales transacted.

The group is considered underweight in Victorian assets, relative to its New South Wales and Queensland property portfolio. In Melbourne, Charter Hall controls the Home HQ complex in Nunawading and the first stage of the Lacrosse Apartments project in Docklands.

When the economic downturn took hold in late 2007 it was reported Charter Hall was in advanced negotiations to buy two prominent Melbourne sites: the South Wharf office building, in Docklands, and the outgoing GTV Nine studio in Richmond. Both deals fell over.

Charter Hall did however proceed with plans to buy ten Fosters properties with redevelopment potential in Abbotsford, with joint venture partner the Wyllie Group.

The consortium paid $41 million for the portfolio in late 2007. Charter Hall sold its half share to Wyllie in 2009 for $18.3 million.

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