Charter Hall Group is looking to acquire the 43-level tower at 242 Exhibition St. in Melbourne under an off-market deal that is expected to be worth as much as A$800 million, The Australian Financial Review reported.
The building with a net lettable area of approximately 66,000 square meters is co-owned by Oxford Properties Group Inc. and Investa Commercial Property Fund. It serves as Telstra Corp. Ltd.'s headquarters in the city until at least 2031, according to the publication.
If pursued, the agreement for the property would be struck on a roughly 4.5% yield, the May 27 report added.
Regarding the rumored deal, a Charter Hall spokesperson told the paper that the company does not comment on market speculation.
Separately, Charter Hall is believed to be conducting due diligence for another Telstra-leased office building at 16-18 Mort St. in the Civic area of Canberra, Australia. The property, which might be acquired through the property group's Charter Hall Long WALE REIT for about A$105 million, is part of the Investa Office Fund's roughly A$1.5 billion portfolio that Oxford Properties is selling.