Charter Hall Set to Buy Blackstone’s Stake in Westpac Plaza

Charter Hall property group has emerged as the primary contender to snap up a 50 per cent stake in Sydney’s CBD Westpac Plaza for an estimated $850 million, in what would mark one of 2018’s largest office sales.

If successful the 275 Kent Street acquisition, from vendor Blackstone, will also make Charter Hall the biggest land owners in Sydney.

The deal won’t be completed until rights held by building’s co-owner Mirvac, which holds the remaining half share at a book value of $555 million, are exercised or Mirvac pass on the opportunity to acquire full control of the property.

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Blackstone originally purchased half of Westpac Plaza from Mirvac in June 2014 for $435 million.

The acquisition comes as bidders are showing they’re prepared to pay for top-quality assets in major capital cities, and vacancy levels in Sydney and Melbourne are at record lows, around five per cent.

The property is 100 per cent leased to Westpac Bank and has a 10-year weighted average lease (WALE).

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Charter Hall has already purchased more than $600 million worth of Sydney office towers in recent months. Other properties within their Sydney holdings include the Shelley Street Barangaroo site secured for $525 million.

Charter Hall Group own and manage 332 commercial properties around Australia comprising a total managed property portfolio of $22.5 billion.

The Westpac Place at 275 Kent Street was completed in 2006 and designed by Johnson Pilton and Walker. The trophy tower features 74,593sq m of office space and 2,532sq m of retail.