Charter Hall, on behalf of three of its funds, has bought two Sydney office buildings worth AUD804m (€507.7m).

Charter Hall Prime Office Fund (CPOF), Charter Hall Direct Office Fund (DOF) and Charter Hall Direct PFA Fund (PFA) will hold stakes in the 10 and 12 Shelley Street buildings in the Barangaroo/King Street Wharf precinct.

CPOF will own a half stake in each of the two buildings. DOF holds 50% of 10 Shelley Street while PFA co-owns 12 Shelley Street with CPOF.

Collectively, the two buildings offer some 42,000sqm of net lettable area.

The head of Charter Hall Direct, Steven Bennett, said: “These acquisitions extend our partnership with CPOF and demonstrate the strength of the group’s breadth of capital and capacity to leverage its investment capability to secure outstanding transactions for our investors.”

Bennett said long leases to Australian financial services group Suncorp and American Express combined with the high occupancy would continue to deliver strong levels of income growth to investors.

In 2016, Charter Hall and Morgan Stanley Real Estate Investing’s (MSREI) core Asia fund, jointly acquired 1 Shelley Street from Brookfield for AUD525m.

Adrian Taylor, Charter Hall’s Office CEO, said potential opportunities existed to unlock synergies between the sites by including interlinking buildings above ground to facilitate campus style accommodation for big space occupiers.

With the latest acquisitions, Charter Hall’s total office assets under management rose to approximately AUD12.9bn.