Charter Hall’s Direct PFA Fund paid $80.15 million for a seven-storey office campus leased to the University of New South Wales in Sydney’s inner-eastern Kensington.
The acquisition of 221-227 Anzac Parade from an unidentified Korean institution boosts the fund’s holdings to 18 and its value to $1.8 billion. The fund, which is open to retail, high net worth and self-managed superannuation fund investors, has a weighted average lease expiry of 7.8 years and a 98 per cent occupancy rate.
“The opportunity to invest in the UNSW L5 Building is consistent with PFA’s strategy of acquiring assets with long leases to strong tenant covenants,” Charter Hall Direct chief executive Steven Bennett said.
“PFA continues to attract new equity flows as investors are attracted to the quality of the office portfolio with over 60 per cent government tenant exposure with the remaining income underpinned by excellent tenants such as UNSW.”
The building is fully leased to UNSW, with a 10.75-year lease term remaining. It is located opposite the main UNSW Kensington campus, with immediate proximity to the UNSW Anzac Parade light rail station.
The sale was negotiated off market by JLL’s Luke Billiau and Simon Storry.