Australian property group Charter Hall has confirmed the acquisition of the A$830m (€515m) Telstra Tower in Melbourne in partnership with Canada’s Public Sector Pension Investment Board (PSP Investments).

Earlier this week IPE Real Assets reported that Charter Hall had agreed to buy the 242 Exhibition Street building from Oxford Properties and the unlisted Investa Commercial Property fund (ICPF).

The 43-level Telstra Tower, in the northeastern sector of Melbourne central business district, is an A-grade building comprising almost 66,000sqm of office space.

Confirming the deal, Charter Hall said it will own Telstra’s global headquarters with a wholesale partnership comprising the A$5.4bn Charter Hall Prime Office Fund (CPOF) and PSP Investments.

Charter Hall Group managing director and CEO, David Harrison, said the transaction would be settled in the second half of this year.

Stephane Jalbert, managing director, real estate investments, Europe and Asia-Pacific, for PSP Investments said: “The strong yield profile of this investment and positive growth prospects for the city reinforce our long-term outlook of the Melbourne central business district office market.”

CPOF fund manager, Matthew Brown, said: “Given the favourable Melbourne central business district office outlook, this acquisition provides the fund with a unique opportunity to further enhance the quality of its existing office portfolio.”