Charter Hall Sells out of Newstead
Growthpoint Properties Australia has agreed to acquire Charter Hall's Newstead office tower for $250 million. The deal was struck on a 6.1 per cent passing initial yield.
As part of the urban renewal area of the Gasworks, 100 Skyring Terrace was developed in 2014 and has an area of 24,665 square metres. The property is fully leased to ASX-listed tenants including Bank of Queensland and Collection House, with a WALE of 7.5 yrs and the first significant lease expiry not until May 2026.
Growthpoint will fund the acquisition from existing debt facilities and a $135M capital raising, with the South African Growthpoint entity committing to its full entitlement of $89M.
Charter Hall held the Skyring Terrace building in equal shares in its Prime Office Fund and its Direct Office Fund and is now shifting their focus back to the CBD where they have embarked on a buying spree in 2018, buying over $520M of commercial assets.