Charter Hall Group has formed a new partnership with Abacus to acquire 201 Elizabeth Street, Sydney CBD office tower for A$630 million. The vendor is a 50/50 joint venture between Dexus and Perron Group.
The expected total purchase price is $630,000,000 and the transaction will occur in two tranches, with 75% of the total purchase price payable by mid-November 2019 and the remaining 25% subject to a put and call option expiring at the end of October 2020.
The property comprises a prominent A-Grade commercial building with 34 levels of office accommodation over 36,983 sqm of net lettable area (NLA), above a lower ground food court (12 retail tenancy areas over 1,428 sqm of NLA) and two levels of basement parking for 169 cars.
Sydney CBD office tower is positioned on a large CBD north eastern corner site of 3,901sqm with three street frontages to Elizabeth Street, Park Street and Castlereagh Streets, providing excellent exposure to pedestrian and vehicular traffic. The new Pitt Street metro station, anticipated to open in 2024, will be located diagonally opposite the property further improving public transport access. The property is 99.9% occupied and benefits from average rent reviews of 3.99% per annum and a 4.5 star NABERS Energy rating.
Charter Hall Group Managing Director and CEO, David Harrison commented: “This off market transaction reflects the deep relationships we have across our platform with our investor customers, with capacity to fund major transactions in the Australian market whilst continuing our partnership relationship with Abacus.
“The Charter Hall partnerships comprise the existing DVP partnership with a new partnership formed with one of Canada’s largest pension fund owned property groups Quadreal.”