Home Property Australia Charter Hall confirms purchase of One Shelley Street

Charter Hall confirms purchase of One Shelley Street

  • May 31, 2016

Charter Hall confirms purchase of One Shelley Street

As foreshadowed in April, Charter Hall has created a new wholesale trust with an investment vehicle sponsored by Morgan Stanley Real Estate to purchase the Macquarie Bank building at One Shelley Street in Sydney’s CBD.

Canadian firm Brookfield Property Partners sold the property for $525 million as part of its divestment program to fund its development pipeline, including its $1 billion project at Wynyard in Sydney. Other properties recently sold by Brookfield include Melbourne’s Southern Cross complex for $675 million and the World Square shopping centre in Sydney’s CBD for $280 million.

One Shelley Street is a nine-level office building in the King Street Wharf precinct with a net lettable area of 32,986 sqm and basement parking for 268 cars. It is fully leased to Macquarie Bank. The weighted average lease expiry on the property is 7.5 years.

The new trust will be managed by Charter Hall’s Core Plus Office Fund and brings the company’s total funds under management to $17 billion, including over $8 billion in the office sector.

“Core office remains attractive to both local and international investors due to the current spread between Australian property income yields and bond yields,” says Charter Halls group managing director and CEO David Harrison. “This investment environment will continue to drive strong investment in quality Australian commercial property assets.”

Charter Hall’s Direct Property business has also recently launched the second of its automotive trusts (DAT2) with the purchase of an $82 million portfolio of four automotive dealerships. The properties are 100 per cent leased to Automotive Holdings Group on long-term leases.