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Charter Hall, PSP acquire Aussie development project

Charter Hall Group and Public Sector Pension Investment Board have acquired a development project under construction in Brisbane, Australia.

Charter Hall Group and Public Sector Pension Investment Board have acquired a development project under construction in Brisbane, Australia. No financial terms were disclosed. The project, within the fringe Central Business District Fortitude Valley precinct, comprises an office development and a major public carpark.

PRESS RELEASE

MONTRÉAL, Feb. 23, 2022 /CNW Telbec/ – Charter Hall Group (Charter Hall or the Group) and the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investment managers, are pleased to announce that they have extended their 11-year relationship to acquire a development project under construction in Brisbane.
The property, located at 31 Duncan Street, within the fringe Central Business District (CBD) Fortitude Valley precinct, comprises a 25,000m2 office development and a major 464-bay public carpark, currently under construction by national contractor Hutchinson Builders. The vendor has secured 70% leasing pre-commitments and will provide a rent guarantee over the balance of the space, with subsequent secured lease terms determining the final cost of the investment to the Charter Hall partnership.

The vendor is a private partnership that purchased the public carpark several years ago, gained planning approval for a new office building constructed above the carpark and secured several pre-commitments to bring total pre-leasing to approximately 70% of forecast income on completion. The vendors include Brisbane property identities Andrew King and Tim Mahony. Committed tenants include Urban Utilities, CS Energy, Hutchinson Builders, RPS, CoreLogic and Secure Parking.

Due for completion in December 2022, the new office building will be multi-tenanted and is located within 200 metres of the Fortitude Valley train station and within convenient walking distance to nearby retail and hospitality amenities, and the CBD.

Project features
The building offers a range of sustainability features, including natural ventilation and operable windows, as well as efficient plant and equipment which support the building in achieving its target design ratings of NABERS Energy 5.0 star and NABERS Water 4.0 star at completion. The building will be powered by 100% grid supplied renewable electricity, supporting a shared commitment by the partnership in taking climate action and contributing to a global low-carbon economy.