Charter Hall pays $93 million for share in Brisbane property

Charter Hall’s Direct Office Fund (DOF) has acquired a per cent share in an office building in Brisbane’s inner city Gasworks precinct from Canadian pension investments manager PSP Investments.

The 12-level building at 100 Skyring Terrace, Newstead was completed in 2014. It is 100 per cent occupied, with Bank of Queensland as anchor tenant making up 55 per cent of the gross income.

PSP Investments bought into the property in 2013, teaming up with Charter Hall’s other office fund, the Core Plus Office Fund, to buy the property from FKP Property Group. PSP Investments, which invests on behalf of the Canadian public service and armed forces, has invested about $90 million in agricultural property over the past 12 months.

DOF’s property portfolio is now valued at about $815 million.

“This is the ninth property in the DOF portfolio, all of which are focused on long leased investment-grade commercial office buildings in strong markets,” says Charter Hall Direct head Nick Kelly.