- GIC forms a joint venture with Charter Hall to buy the Canberra building for AU$335 million.
- GIC will retain 95% interest in the acquired building.
- Charter Hall will hold the remaining 5%.
GIC, Singapore’s wealth fund, forms a joint venture with ASX listed property development company Charter Hall (ASX: CHC) to buy an office building fully leased to a government tenant in Canberra for AU$335 million.
The office building is in a prime location – the central business district of Canberra, as it extends access to transport facilities and all major amenities. It is a Grade A building of a 40,000 square meter net leasable area. In addition, companies pointed that the building is constructed with above-market sustainability credentials.
Presently owned by Mirae Asset Global Investments, the 12-storey building will be acquired for A$322 million. GIC will have 95% interest in the property, and Charter Hall will own the remaining 5% interest.
GIC plans to expand its portfolio in the Australian market with this acquisition, while Charter Hall has further strengthened its 15-year relationship with GIC and upholds its position in Australia.
Group CEO and Managing director of CHC, David Harrison, added that acquisition “reflects our strong market position and continued conviction for office assets with strong underlying investment fundamentals”.
The purchase of the Canberra building has been interpreted as a strong investment by the management of GIC and Charter Hall. In addition, the acquisition can be linked with the GIC plan to open an office in Sydney.