Charter Hall moves on Telstra HQ in Melbourne

Charter Hall Group (ASX: CHC) has formed a partnership with Charter Hall Prime Office Fund (CPOF) and the Public Sector Pension Investment Board (PSP Investments) to acquire a 100% interest in the Global HQ of Telstra.

The asset located at 242 Exhibition St in the Melbourne CBD was acquired for $830M, representing a 4.5% yield. It features a premium grade 47-storey office tower that has 65,913 sqm of NLA across 43 floors complimented by retail and car parking.

The building is current undergoing a capital works program to improve the elevators, mechanical upgrades and enhance the end of trip facilities. The building is anchored by Telstra Corporation comprising of 99.6% by NLA and has a WALE of 11.9 years. The Telstra Lease expires in FY32 and includes features of options for renewal and fixed rental reviews of 3.5%.