Charter Hall Group, through its Prime Office Fund, signed a roughly A$340 million deal to buy the 15-story Telstra House building in Sydney's central business district from Singapore-based Chinese trading house Bright Ruby, The Australian Financial Review reported.
The listed developer outbid Chinese investor Yuhu Group to secure the 23,275-square-meter grade A commercial building at 231 Elizabeth St., which is fully leased to Telstra Corp. Ltd. Australian peer Dexus was initially heard to be interested in the asset, but eventually withdrew its intent to purchase.
According to the Dec. 20 report, the deal for the asset, brokered by Colliers International and JLL, was struck on a 5.15% yield.
Bright Ruby purchased the property in 2013 for about A$201 million. The asset underwent various refurbishments since its construction in 1987, the most recent of which was the addition in 2010 of flexible floor plates measuring an average 1,740 square meter per floor, the publication noted.