Charter Hall Fund Acquires 50% Of Newstead Office Tower

The unlisted Charter Hall Direct Office Fund has acquired a 50% interest in the landmark Bank of Queensland building at Newstead in Brisbane for $93 million.

The acquisition of the interest in 100 Skyring Tce pushes the value of DOF’s property portfolio to about $815 million.

The 12-level building was completed in 2014.  It is fully occupied, with Bank of Queensland as the major tenant, and has a weighted average lease expiry of 10.4 years.

Charter Hall Direct's Nick Kelly said the acquisition would be a further positive for the already top performing fund.

The current forecast distribution return for DOF is 6.6 per cent pa for the period to 30 June 2017.

“This is the ninth property in the DOF portfolio, all of which are focused on long leased investment-grade commercial office buildings in strong markets,” Mr Kelly said.

“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 1.7km from the Brisbane CBD.

“Significant surrounding developments include a number of modern office complexes such as 757 Ann St, K1 St Pauls Tce & the HQ North and South Towers, while nearby is the new Aurizon headquarters to be constructed at 900 Ann St, Fortitude Valley, which DOF also purchased an interest in last year,” Mr Kelly said.