Charter Hall acquires stake in Brisbane office building
Charter Hall’s unlisted commercial office fund, the Direct Office Fund (DOF), has acquired a 50 per cent share of 100 Skyring Terrace in Brisbane, which the firm believes will be positive for its SMSF investors.
The building's net purchase price of $93 million represents the DOF's 50 per cent share in the asset.
It was completed in November 2014 and has the Bank of Queensland (BOQ) as its major tenant, according to Charter Hall.
“The 12-level building is 100 per cent occupied and has a weighted average lease expiry of 10.4 years, with the BOQ comprising 55 per cent of gross income,” said Charter Hall.
Charter Hall Direct Property head Nick Kelly said the acquisition would be positive for the fund.
“100 Skyring Terrace is located in Newstead, on the fringe of the Brisbane CBD, in what is known as the Gasworks precinct, a flourishing business and lifestyle community only 1.7 kilometres from the CBD,” said Mr Kelly.
DOF’s fund manager Steven Bennett said the fund is likely to close in coming months following broad-based interest from investors.
“Investors are interested in DOF as they continue to seek a strong income yield, high-quality assets, capital value growth, investment security and low volatility,” said Mr Bennett.
“SMSF trustees in particular have shown a high level of interest in the fund.”