Freehold Site of Sydney’s Tallest Tower Sells for $98m

The freehold title of Sydney’s tallest commercial tower, the landmark Chifley tower, has changed hands for $98.5 million, offloaded by Singaporean sovereign wealth fund GIC.

Charter Hall’s Prime Office Fund has acquired 100 per cent of the 6,438sq m freehold site at 2 Chifley Square.

GIC had listed a half stake in the 50-storey tower in August but has since withdrawn it from the market.

Charter Hall chief executive David Harrison said that the acquisition delivers a “strategic holding” for the fund, given its ownership of the adjoining leasehold interest at 167 Macquarie Street.

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“Charter Hall has a long-term relationship with the leasehold owner, GIC, and we hope to create a mutually beneficial outcome for both parties,” Harrison said.

“Alternatively, given the capacity for CPOF to match a high yielding leasehold asset with the Chifley freehold site, the total return profile of each asset is complimentary and delivers an attractive total return profile.”

The enlarged footprint endows Charter Hall with ownership of Sydney CBD’s largest single amalgamated site at 7,842 square metres.

The freehold site accommodates a 94.6-year leasehold for the 70,000sq m Chifley Tower.

The acquisition grows the group’s office portfolio beyond $12 billion of funds under management.

The Charter Hall fund also nabbed the newly-formed Australian Financial Services Authority as a tenant at Wesley Place. AFCA signed a 12-year lease for about 8,000sq m at the 130 Lonsdale Street tower.