Australian Charter Hall nabs Sydney towers for A$804m

Australian property fund manager Charter Hall has completed the purchase of two office buildings in Sydney from Canadian investment manager Brookfield for a reported $804m.

The two towers at 10 and 12 Shelley Street are in the city’s King Street Wharf precinct and are let to bank Suncorp and financial services multinational Amex, according to local media.

The buildings were jointly acquired for three of Charter Hall’s funds.

The towers offer a combined 42,000 sq.m. of net lettable space and a weighted average lease expiry of 9.5 years.

The deal has an estimated blended yield of about 4.5%.

“These assets are a good fit for Charter Hall’s investment funds, providing quality rental income from strong tenant covenants with long term leases,” Charter Hall Office chief executive Adrian Taylor said.

“These assets also have the potential to deliver future development upside.”

Charter Hall’s assets under management rose to almost A$13bn following the deal.

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