Charter Hall Group is conducting due diligence for the potential acquisition of GIC Pte. Ltd.'s 50% stake in the leasehold of the A$1.8 billion Chifley Tower and Plaza in Sydney's central business district, The Australian Financial Review reported, citing unnamed sources.
The potential deal for an interest in the 50-story tower's leasehold, which will last until June 2113, could be valued at about A$900 million, and is expected to be struck on a yield below 4.5%, according to the publication.
The Australia-listed property funds manager declined to comment on the potential transaction, the May 28 report said.
Rumors regarding Charter Hall's negotiations with the Singaporean sovereign wealth fund for the leasehold stake have been circulating since February. The potential deal for the leasehold stake would follow Charter Hall Prime Office Fund's A$98.5 million purchase in December 2018 of the 2 Chifley Square property's freehold title.