Two Charter Hall Group-managed funds, Prime Office Fund and Deep Value Property Fund, formed a joint venture with GIC Pte. Ltd. to co-own the A$1.8 billion Chifley Tower property in Sydney's central business district, according to an Aug. 7 release.
IPE Real Assets reported that GIC sold a half stake in the property to the Charter Hall funds for around A$900 million. GIC continues to own the remaining half stake.
Charter Hall will assume the asset and property management of 100% of the 50-story tower, increasing the group's funds under management to over A$33 billion. Chifley Tower has a net lettable area of 68,867 square meters and a weighted average lease expiry of 4.3 years. It is 98.3%-leased to tenants including UBS Group AG, Investec Ltd., Sumitomo Mitsui Banking Corp. and Morgan Stanley Australia Ltd.
Rumors of Charter Hall's negotiations with GIC for the transaction have been circulating since February. In May, the Australia-listed fund manager reportedly conducted due diligence to buy the wealth fund's half-stake in the tower's leasehold.