The Charter Hall Prime Office Fund (CPOF) has bought a 50% interest in a A$2.1bn (€1.4bn) Australian office complex owned by Brookfield and Blackstone.
In April this year, IPE Real Assets reported that Blackstone and Brookfield had put the Southern Cross Towers in Melbourne up for sale.
It is understood that both Brookfield and Blackstone will each retain a 25% stake in the 126,000sqm office complex following CPOF’s stake purchase.
Charter Hall managing director and group CEO, David Harrison, said the acquisition increased CPOF’s weighting to the ‘Paris End’ of Collins Street, and this would enhance the fund’s exposure to modern assets with government tenants.
He added that the CPOF portfolio now comprised A$9bn of the group’s A$25bn office platform.
Brookfield managing partner and head of Australian real estate Sophie Fallman said: “Since developing the assets, Brookfield has added significant value to Southern Cross Towers, including the recent seven-year lease with the Victorian Government and upgrades to the East tower.”
Charter Hall Office CEO Carmel Hourigan said: “We will work with Brookfield to re-lease the West Tower upon relocation of Australia Post in 2025, and look to further enhance the amenity offered by the complex.”
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