Charter Hall parts ways with Bank of Queensland HQ for $250m

The purchase of the A-grade office at 100 Skyring Terrace in Newstead will be partially funded by an equity raising of up to about $135 million.

The Australian last month flagged the purchase, which was brokered by CBRE’s Flint Davidson, Bruce Baker and Tom Phipps.

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Growthpoint is undertaking a rare non-underwritten one for 17.65 accelerated non-renounceable rights offer, with its South African parent Growthpoint Properties committing to take up its full entitlement of about $89 million.

The building sold on a passing initial yield of 6.1% and has a weighted average lease expiry of seven-and-a-half years.

It is fully occupied by the Bank of Queensland and Collection House and has a weighted average rent review of 3.9% per annum.

Growthpoint CEO Tim Collyer.

Completed in 2014, the building spans 24,665sqm of lettable area across large floor plates. The building, which has a 5.5 Star NABERS Energy Rating and a 5 Green Star As Built v3 Rating, was designed by ML Designs and sports a fit out by Bates Smart.

Growthpoint managing director Timothy Collyer said buying the building was part of the group’s strategy to acquire high-quality, modern assets located in prime markets with a long WALE and fixed rental increases.

“This acquisition further diversifies Growthpoint’s high-quality portfolio and has again demonstrated the group’s ability to source and execute quality transactions across sectors,” he said.

The rights offer is at a price of $3.46 per security and is at 4.2% discount to the last close price of $3.61.

Goldman Sachs is lead manager and bookrunner.

The deal will provide Growthpoint with annualised fiscal 2019 funds from operations accretion of about 2.2% and the trust boost its FFO guidance increased from at least 24.6 cents per security to at least 24.8 cents per security.

This article originally appeared on www.theaustralian.com.au/property.