A fund managed by Australian property group Charter Hall has sold its interest in an office campus in Sydney’s Eastern Suburb for A$80m (€49m) to meet redemption requests from investors.

The Charter Hall Direct PFA fund has divested its interest in the asset at 221-227 Anzac Parade in Kensington that is leased by the University of New South Wales, with nine years remaining on the existing lease.

The unlisted fund, which has a A$2.5bn portfolio, acquired the asset in April 2021 for A$80.15m.

Charter Hall Direct CEO, Steven Bennett, said, “This divestment is in line with our portfolio curation strategy and demonstrates our commitment to transacting with financial discipline and acting in the best interest of our investors.”

The fund manager this month informed investors that it had limited redemptions in the office fund to 25%, because it was unable to sell buildings at fair prices to raise liquidity and that it was continuing to offload assets. It has received redemption requests totalling 15% of its equity.

In a note to investors, the fund said it planned to meet all its remaining obligations this year and was in the process of selling more assets, having already sold some assets in the fund to return capital to investors.

Charter Hall said today: “In line with its product disclosure statement, PFA offers investors liquidity windows every five years. PFA accepted all redemption requests received in response to its most recent liquidity event and will meet those requests in full in an orderly and progressive manner.”

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