Charter Hall has announced that its PFA Fund has acquired in separate transactions a 50 per cent interest in two commercial office buildings in Brisbane and Perth’s central business districts (CBDs), respectively.
The interests in the buildings were purchased by the Australia Securities Exchange-listed Charter Hall Long WALE REIT, the company said.
Charter Hall said the move was consistent with its strategy to own “high-quality office buildings located in CBD or established office markets around Australia”.
The Brisbane property was located at 83-85 George Street and comprised a net lettable area (NLA) of 10,550 sqm and the building was fully leased to the Queensland Police Services (QPS) and state Department of Employment, Small Business and Training (DESBT), with a long weighted average lease expiry (WALE) of ten years.
At the same time, the Perth property was located in the Optima Centre, 5km from the Perth CBD, and the centre comprised two adjacent buildings with an NLA of 16,117sqm.
The centre was 82.5 per cent leased to the Government of Western Australia, with 13.5 years remaining, while other smaller tenants included Canon Australia, ABN and Stellar Systems.
Steven Bennett, Charter Hall Direct’s head, said: “Both properties fit the defining characteristics of the PFA Fund, being well located, fully let capital cities buildings and with long leases to government tenants.”
“Since the re-launch of the fund in August 2017, PFA has acquired over $160 million of quality office property and the fund has delivered total returns of 11.8 per cent per annum to investors,” he said.
“These latest acquisitions are the ninth and tenth properties in the fund and they will increase the WALE of the Charter Hall Direct PFA fund from its current level of 8.1 years to 8.4 years.”