Charter Hall-Abacus consortium to buy Brisbane Club property in deal worth $63.5m

Charter Hall-Abacus consortium to buy Brisbane Club property in deal worth $63.5m

A consortium owned by Charter Hall Group (ASX: CHC) and Abacus Property Group (ASX: ABP) has entered conditional contracts to buy the Brisbane Club Tower on 241 Adelaide Street through two deals worth a combined $63.5 million.

The two companies' CHAB Office Trust may have failed in its bid to acquire the Australian Unity Office Fund (ASX:AOF) in 2019, but today it has announced it is on track to acquiring the leasehold asset on Adelaide Street from AOF for $31.5 million.

The consortium held by Charter Hall and Abacus has also entered into a conditional contract with the Brisbane Club to acquire the freehold interest for a consideration of $32 million, subject to a lease back of up to five years

Both transactions will be paid for with existing liquidity from Abacus and Charter Hall, in addition to asset level non-recourse debt for the property, and are expected to settle simultaneously this year.

The property comprises approximately 10,107sqm of net lettable area plus car parking for 85 cars, located on the corner of Adelaide Street and the Anzac Square public park open space, providing a strategically core located asset, subject to a minimum five-year lease back term from the Brisbane Club.

"The acquisition of this quality building in a prime location in Brisbane CBD is a great opportunity for the Consortium to implement active asset management plans and capabilities to drive the returns from the asset," Abacus managing director Steven Sewell and Charter Hall Group managing director David Harrison said in a joint statement.

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