Charter Hall have sold its interest in the Thales Australian Head Office at Sydney Olympic Park to …..Charter Hall for $46.2M. The asset was originally held in the Charter Hall Direct Sydney Olympic Park Fund, a single purpose fund it inherited from the Folkestone platform acquisition. Charter Hall appointed Savills and Knight Frank in February this year to market the asset for the investors. Whilst some potential investors may have been dissuaded by the leasehold interest, the long term tenure of Thales was expected to attract a competitive market. Located at 7 Murray Rose Ave, the five-storey, 5 Star NABERS rated building has retail at ground level, with office space spanning the remaining four floors. Thales, which develops technology and systems for the defence force, has a lease in place until at least 2032. Charter Hall decided to re-house the asset in the Long WALE REIT. The acquisition by the Trust will show a 5.4% passing yield. Settlement is conditional on the successful vote of vendor’s unitholders. The related party nature of the transaction always brings to question the arms length nature of the transaction process and to stand up to scrutiny Charter Hall have ensured that the property was formally marketed by two external agents and that the final transaction is subject to unitholder approval. We would expect that independent trustee boards and chinese wall processes are also at work within the business. Charter Hall have completed several related party transactions over recent years, securing fees for the business along the way. Location Plan: #CharterHall #Commercial
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