Diversified fund supervisor Charter Hall has prolonged its presence in Melbourne’s “Paris end”, shopping for the freehold of the Collins Place precinct for an estimated $60 million.
Under the deal, the group’s wholesale Charter Hall Prime Office Fund, will purchase the freehold from an unnamed vendor and can maintain it for 107 years. The AMP Wholesale Office Fund will retain the leasehold for the 13,350 sq. metre web site which is residence to the dual towers of the ANZ Bank and the Sofitel Hotel.
Sitting at 35 and 55 Collins Street, it’s within the prime of what’s referred to as the Paris finish of the town. It will add to Charter Hall’s different belongings within the space of the not too long ago bought Southern Cross towers — the Wesley precinct, the Telstra HQ at 242 Exhibition Street and 11 and 288 Exhibition Street.
“We are pleased to have added to our Paris end footprint, with the largest CBD land holding in the Paris end totalling 40,000 square metres of CBD land,” Charter Hall’s chief govt David Harrison mentioned.
“Collins Place presents a unique opportunity for the office fund’s investors to secure one of the largest, freehold title, prime CBD sites nationally.”
The deal will enhance the ASX-listed Charter Hall’s suite of belongings beneath its large-scale $80 billion funds beneath administration. The group has a market worth of $6.1 billion and owns, manages and co-invests in malls, workplace towers, petrol stations, pubs and huge format retailers.
The buy comes because the workplace market undergoes its structural change to hybrid and versatile work practices pushed by the worldwide pandemic. Colliers, nationwide director, Melbourne CBD workplace leasing Andrew Beasley mentioned in current workplace commentary that there had been a flight to high quality by tenants.
“Tenants of all sizes are electing to upgrade their accommodation, not only to encourage their staff to return to the office, but as a retention and attraction strategy in a tight labour market,” Beasley mentioned.
“Landlords that are choosing not to upgrade their buildings to meet the demand for quality and higher environmental ratings are likely to be left behind.”