Charter Hall Buys Canberra Office Bldg For A$363mil

AUSTRALIA – Geoscience Australia, an office building located in Symonston within the nation’s capital, has been purchased for A$363 million, reported latest IPE Real Assets on Thursday morning (13 October, SGT).

The seller is German property investor Real IS, while the buyers comprise 3 Charter Hall funds. An unlisted fund will hold 50 percent of the commercial property, whereas 2 listed funds will own a quarter-stake each. These are Charter Hall Long WALE REIT and the Charter Hall Social Infrastructure Fund.

“Charter Hall sees Geoscience Australia as a compelling life sciences investment in a strongly performing Canberra market,” said David Harrison, Managing Director at Charter Hall.

He said the capital’s office market offers government tenant covenants as well as enticing yields and yield growth, which would provide resilient investment results for Charter Hall’s investors.

Notably, the office building is fully leased by federal government agency, Geoscience Australia.

Previously, Real IS acquired the Geoscience Australia office building for A$234 million in 2006. The German property investor is also divesting another commercial property in Canberra, the headquarters of the Australian Taxation Office (ATO), which is expected to sell for roughly A$300 million.

Interestingly, real estate investment management group Charter Hall is said to be considering to acquire ATO’s headquarters.

In Canberra, Charter Hall has emerged as the single biggest commercial real estate investor having picked up at least A$1 billion worth of commercial properties over the last 2 years.

Before Geoscience Australia, the property investment management firm’s last acquisition was 50 Marcus Clarke Circus, which was jointly acquired with Singaporean sovereign wealth fund GIC for A$335 million in December 2021.