Two Charter Hall (ASX: CHC) managed wholesale funds have partnered with Singapore sovereign wealth fund GIC to acquire the iconic Chifley Tower.
Charter Hall will assume the asset and property management of 2 Chifley Square, Sydney, increasing the group's funds under management (FUM) by approximately $1.8 billion to over $33 billion.
Charter Hall's prime office fund and DVP wholesale fund has formed a joint venture with GIC to own Chifley Tower as co-owners.
"This off market transaction reflects the deep relationships we have across our platform, extends the office platform FUM to over $15 billion, whilst also extending a well-established 15-year relationship with GIC," says David Harrison, Charter Hall Group managing director and CEO.
"We have used our diversified funds platform to bring two of our wholesale funds/partnerships together to form a joint venture with GIC to own one of Australia's pre-eminent premium grade office towers situated on arguably the best prime CBD site in Sydney."
Chifley Tower is an office tower of 68,867 sqm of lettable area, with over 5,000 sqm of prime CBD retail across lower ground, upper ground and first floor.
The property is leased to multiple blue-chip tenants including UBS, Investec, Sumitomo Mitsui Banking Corp, and Morgan Stanley Australia.
Shares in Charter Hall are up 3.59 per cent to $11.54 per share at 2.49pm AEST.
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support