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Charter Hall has snapped up the Capital Hill building in Brisbane's CBD, which sits directly opposite the new multi billion-dollar Queens Wharf redevelopment, for $60 million.
The acquisition at 85 George Street represents a combined buyout, as Charter Hall Long WALE REIT (ASX: CLW) and Charter Hall Direct PFA Fund (PFA) both took a 50 per cent stake in the company.
CLW and PFA intend to complete a $102.2 million overhaul on the 17-storey office building, which is expected to attract an initial yield of 6 per cent and a rate of just over $9,600 per square metre.
Charter Hall fund manager Avi Anger says the purchase is the latest in a string of high-profile acquisitions to further push into the lucrative South East Queensland market.
"The acquisition increases the REIT's exposure to the improving Brisbane CBD office market," says Anger.
"The property should benefit from the $3.6 billion Queens Wharf development which is scheduled for completion in 2022.
"This major project for Brisbane will significantly improve the amenity and attractiveness of this part of the Brisbane CBD."
Last month, CLW purchased the Club Hotel Waterford for $22 million and in July it acquired 40 Tank Street Brisbane alongside PFA for a combined $93 million.
Settlement of the 85 George Street transaction is scheduled for next Friday 12 October.
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