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Charter Hall fund sells Parramatta asset for $45m

Parramatta-CBD

The 10,943 square metre nine level office property is located on the corner of Wentworth Street and Parkes Street in the south eastern commercial precinct of Parramatta.

Mr Steve Bennett, Charter Hall’s DOF Fund Manager

 said the sale is a positive outcome for DOF investors and is a continuation of Charter Hall’s strategy which focuses on selling non-core assets, returning proceeds to investors and re-investing new equity into higher quality office properties.

“The transaction follows a successful releasing program and the active asset management of the building to maximise its value and position the property for sale. The strong sale metrics highlight that the property was competitively bid by a number of interested parties,” he said.

DOF, which is currently open to investment, will continue to divest non-core assets to recycle into higher quality assets with better risk adjusted returns and longer lease terms.

DOF is forecasting an annualised return of 7.69 per cent per annum for the period to 30 June 2015, coming from high quality CBD office property. DOF has been seeded with a core property portfolio of four assets, which were selected for their prominent locations and their demonstrated strong tenant demand over a long period of time.

Mr Richard Stacker, Head of Charter Hall Direct Property

, said Charter Hall has seen strong investor appetite across the unlisted property funds that are invested into high quality office, industrial and retail property assets, with these highly rated funds offering investors access to an investment with stable and growing income, with the added benefit of tax-advantaged income.

“With the cash rate currently sitting at 2.5 per cent and investor confidence increasing, interest in direct property, which is providing a starting yield to investors of over 7 per cent for high quality assets with moderate gearing, is proving to be a popular option,” Mr Stacker added.

DOF received an “AA” rating from independent rating house, Property Investment Research (PIR) in October 2014. The minimum investment in DOF is $20,000, with distributions payable quarterly.

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Article originally posted at: https://theurbandeveloper.com/articles/charter-hall-fund-sells-parramatta-asset-45m