Charter Hall Group Edges Up After Singaporeans Exit From $140m Collins Street Deal

  • Oct 30, 2018 AEDT
  • Team Kalkine
Charter Hall Group Edges Up After Singaporeans Exit From $140m Collins Street Deal

Charter Hall Group (ASX: CHC) took over the site at prime locations of Collins street. As per the recent data released by Domain Group, house prices were down by 3.9% in Melbourne in three months to September. At present, national property market is highly impacted and facing cooling off period. Clearance rate has fallen by 50% in recent weeks.

Under such prevailing conditions across reality sector, Charter Hall came up with recent development on its proposed residential project on October 29. Failed to get buyers for residential project made the Singaporean owners to finally take an exit from the deal. The company, CHC took over the site located at the prime Collins street. Site worth of approximately $140 will be designed for office development. 

The site is located at the corner of King street, 555 Collins street. However, at present times, properties located at the Collins street were impacted with the overall sector impact and high-rise apartments located at the street also faced the negative investor sentiments, impacting the overall demand for the properties. Charter Hall prime office fund is having one site already in possession, and with this site undertaken by it, Charter Hall is now having two sites at 55 King Street. Two sites together total to approximately 4620 square meters, providing major accumulation towards western end of Melbourne central business district. According to Matthew Brown, Fund manager of Charter hall public fund, the site is a favorable spot with attractive price and nearby attraction adjoining to the already existing property at 55 King Street. The acquisition was well in line with Charter Hall prime office fund’s investment strategy of acquisition of sites in tightly held markets to work on “develop to core” part of its investment strategy. The sale process was negotiated by Knight Frank’s Paul Henley and Scott Newton.

The same strategy of acquisition was taken into consideration for the acquisition at the other end of the city at northern end of Lonsdale street. The site with an approx. size of one hectare will have a $700 million office development which is well under process. Second acquisition of $200 million for office development at Lonsdale street has also been approved. Immediately after one year from its project launch, Koh Wee Meng sold 46% of the residential tower project at 555 Collins street launch. Project approval was received after Fragrance stepped back from its original plan for the prominent sites and buying it directly for approximately $78 million in 2014 from the developer and Financial Rich Lister Harry Stamoulis. With the tightening of the planning system in the city by the formation of the new government and planning minister Richard Wyne, Fragrance decided to sell its Collins street site. Two years ago, it failed to get any buyers for the project. Fragrance changed the work line and secured an approval for the development of smaller, residential only properties and began its marketing in the middle of the last year.

After the announcement of the Singaporeans exiting from the $140m deal, CHC was slightly down. However, it recovered soon and was seen trading at the levels of $6.905 (3 PM AEST).


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK