Charter Hall Group agreed to acquire an amalgamated holding in Brisbane's central business district in Australia for nearly A$94.0 million from the Blackstone Group LP-backed 151 Property Group.

The deal for the No. 1 Brisbane property reflects a 7.45% core cap rate and a 7.9% fully let passing yield including income support. It covers three adjoining retail/office buildings with a combined lettable area of more than 10,000 square meters.

The site fronts the Queen's Wharf precinct and includes the assets at 217 George St., 60 Queen St. and 231 George St. The three buildings are leased to tenants including St George Bank, SLF Lawyers, Chemist Warehouse, The Reject Shop, 7-Eleven and the Heritage Building Society.

David Harrison, Charter Hall's CEO and managing director, said the site can be used as a seed asset for a new investment strategy. It carries approval for an 81-story tower, which may make it one of the tallest apartment buildings in the city.