ASX-listed Charter Hall has acquired an A-Grade office tower in the heart of the Canberra CBD for $290 million, looking to take advantage of the buildings’ large floorplates. 

Located at 21 Genge Street, the 42,000 sqm twin tower development had a 5-year weighted average lease expiry (WALE), reflecting a 7.5% initial yield. 

The property was leased to the Commonwealth Government and was occupied by the Australian Tax Office (ATO) and the Department of Veteran Affairs. It held a carbon neutral certification and 5-star NABERS Energy rating. 

“We welcome two of our major existing customers to the $30 billion office portfolio and look forward to adding value to the building for their benefit,” Charter Hall Office CEO Carmel Hourigan said.  

“Canberra’s office market is one of Australia’s most resilient office markets with low vacancy rates for prime stock, while large floor plates within a two-tower complex provides flexibility in meeting customers’ needs.” 

The Charter Hall-managed partnership was owned by the $10 billion flagship wholesale office fund CPOF, together with Charter Hall Group.  

The company said the investment strategy was to extend the WALE of the asset and take advantage of the modern buildings’ large floorplates and ideal location directly opposite the 260-retailer Canberra Centre shopping centre. 

Charter Hall Managing Director and Group CEO David Harrison said CPOF continued to curate its portfolio with modern office assets leased to blue chip customers.  

“The relatively high passing yield provides enhanced distribution yields and total returns, while further enhancing resilience in the overall portfolio,” Harrison said. 

“The group also sees deep value and has added this investment to its balance sheet of co-investments to drive earnings growth and incubate for future partners.”