Charter Hall Direct Office Fund acquires QIC’s Mary St tower

Charter Hall continues to tap the Brisbane CBD office market amidst a recovery in occupancy levels. The latest transaction sees Charter Hall’s Direct Office Fund (DOF) as the successful bidder for the QIC-owned Brisbane office tower at 61 Mary St, in a $275M deal.

The deal comes after the government owned investment company QIC placed as much as $2.3B of assets onto the market in late August 2018. The 17-level property is fully leased to the Queensland Department of Transport and Main Roads, with a 10.4 year weighted average lease term (WALE) and enjoys fixed 4% annual rent reviews. The tower recently undertook $38M of refurbishment in 2018 and has one of the most expansive floor plates in the Brisbane CBD, stretching between 1,525 and 2,030 sqm. The property will be held by Charter Hall’s Direct Office Fund, increasing the Fund’s assets to $1.7B.

The injection of capital into major CBD infrastructure projects by the Queensland state government and private sector will only reinforce growth in the long-term for Brisbane’s CBD office market.