The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherTed TabetWed 10 Aug 22

GIC Takes Half Stake in $1.5bn Charter Hall Office Project

555 Collins Street Charter Hall QIC

Real estate investment group Charter Hall has divested a 50 per cent stake in its $1.5-billion office development at 555 Collins Street to Singapore’s sovereign wealth fund GIC after the deal received FIRB approval.

The mammoth 84,000sq m office project is currently being built in one of the faster-growing areas of the CBD—the midtown section of Collins Street.

It was one of several major projects fast-tracked by the Victorian government in an effort to get building and development projects moving as quickly as possible during the pandemic.

Charter Hall chief executive David Harrison said the deal would extend the group’s 22-year partnership with GIC, offering it the opportunity to co-own one of Melbourne’s pre-eminent new office precincts.

“This transaction has provided our flagship office wholesale fund, CPOF, with capital to expand our Melbourne office portfolio via the acquisition of Southern Cross Towers and to further invest in stage two of 555 Collins Street, when appropriate,” he said.

The 3000sq m site, strategically positioned on one of Melbourne CBD’s key intersections—surrounded by other premium grade office towers such as Rialto, 530 and 567 Collins Street—was acquired in 2018.

In early 2019 the group lodged plans for and subsequently received planning approval for the state-of-the-art, twin office tower precinct inclusive of 2300sq m of retail.

The towers will adjoin with the CPOF owned 55 King Street, which Charter Hall has owned since 2016, to create 50 metres of northern frontage on Collins Street, 100 metres of frontage on King Street and direct access to Flinders Lane.

A render of the two-stage premium office development Charter Hall is building at 555 Collins Street. Image: Cox Architecture
▲ A render of the two-stage premium office development Charter Hall is building at 555 Collins Street. Image: Cox Architecture

The precinct’s first $750-million tower is currently under way and due for completion in 2023, comprising 34 levels and 48,000sq m of premium grade lettable area.

Deep-pocketed global tech giant Amazon agreed to give up its existing space on Exhibition Street at the top end of the city to move into larger digs at 555 Collins Street taking 15,000 square metres of tech-enabled workspaces and touchless amenity. 

Meanwhile, Aware Super, which recently merged with VicSuper, plans to consolidate from three locations across the city into one, taking up 8000 sq m at 555 Collins Street.

Cox Architecture designed the two-tower project along with global design practice Gensler, which Charter Hall tapped in 2019 given the firm's experiences designing workplaces for clients including Apple, Airbnb and Facebook.

“Our development and asset management teams have achieved leasing with major commitments from Amazon and Aware Super, whilst further leasing is well advanced,” Charter Hall office chief executive Carmel Hourigan said.

“This highlights the bifurcation we have expected with tenant customers increasingly attracted to brand new, state-of-the-art space to satisfy the expectations of their people and customers.”

Last month Charter Hall acquired a half-interest in the $2-billion Southern Cross Towers complex in Melbourne from Canada’s Brookfield and US private equity and real estate house Blackstone.

The towers, which span a combined 126,000sq m of office space, were targeted to enhance the group’s exposure to modern assets with government tenants—currently occupied by the Victorian government with a weighted average lease expiry of six years.

Charter Hall’s CPOF portfolio has now grown beyond $9.5 billion in scale and represents the single largest office portfolio within the group’s $26 billion office platform. 

The group has remained focused on high-quality premium assets which are less likely to be affected by current market volatility. 

Greater risk surrounds secondary assets with shorter financing and lease terms in place.

OtherRetailOfficeAustraliaMelbourneDeal
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Anthony and Paul Mancini HERO TEMP
Exclusive

Adapt or Die: How Mancini Pulled Back from the Brink

Leon Della Bosca
8 Min
Elanor Investors Tweed Mall masterplan
Exclusive

Tweed Marks Time as $900m Mall Redevelopment Goes Quiet

Renee McKeown
6 Min
High-density residential construction in Melbourne
Exclusive

Stabilising Conditions in Melbourne Bring Hopes of Improved Feasibility

Leon Della Bosca
6 Min
QBCC project trust accounts hero
Exclusive

Developers Warned as Commission Cracks Down on Subbie Pay Scheme

Clare Burnett
7 Min
Urban Infill site at Tonsley SA
Exclusive

SA Grapples with ‘Development Killer’ Carparking Law Changes

Leon Della Bosca
7 Min
View All >
Coliving Chippendale EDM
Residential

Plans for $31m Co-Living PBSA in Sydney CBD Revealed

Clare Burnett
Anthony and Paul Mancini HERO TEMP
Exclusive

Adapt or Die: How Mancini Pulled Back from the Brink

Leon Della Bosca
GPT/QuadReal First Partnership EDM
Industrial

GPT, QuadReal’s $1bn Deal Joins Rush for Aussie Logistics

Clare Burnett
The fund will target east coast urban infill and middle-ring assets as overseas interest in the sector keeps ramping up.…
LATEST
Coliving Chippendale EDM
Residential

Plans for $31m Co-Living PBSA in Sydney CBD Revealed

Clare Burnett
3 Min
Anthony and Paul Mancini HERO TEMP
Exclusive

Adapt or Die: How Mancini Pulled Back from the Brink

Leon Della Bosca
8 Min
GPT/QuadReal First Partnership EDM
Industrial

GPT, QuadReal’s $1bn Deal Joins Rush for Aussie Logistics

Clare Burnett
3 Min
Balmain Leagues Club EDM
Residential

Perifa’s Ex-Balmain Leagues Plan Clears Final Hurdle

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/charter-hall-qic-555-collins-street-melbourne-development-transaction