Charter Hall and one of its funds, Charter Hall Prime Office Fund have purchased an office building in Australia’s capital from German investor Real IS for A$290m (€188m).

The building at 21 Genge Street is the second asset that Charter Hall has acquired from Real IS in Canberra. It followed the purchase of the Geoscience Australia building for A$363.5m last October.

The latest transaction involves the 42,000sqm twin towers complex which is leased to the Australian Tax Office and the Department of Veteran Affairs.

“The relatively high passing yield provides enhanced distribution yields and total returns, while further enhancing resilience in the overall portfolio,” said Charter Hall managing director and group CEO, David Harrison.

He said: “The group also sees deep value in the asset and has added this investment to its balance sheet of co-investments to drive earnings growth and incubate for future partners.”

With the latest acquisition, the group has invested some A$1.3bn in well-tenanted office buildings in Canberra.

Charter Hall Office CEO, Carmel Hourigan, said: “Canberra’s office market is one of Australia’s most resilient office markets with low vacancy rates for prime stock, while large floor plates within a two-tower complex provides flexibility in meeting customers’ needs.”

To read the latest edition of the latest IPE Real Assets magazine click here.