In November last year, Charter Hall Long WALE REIT announced that it had contracted to acquire a 50% interest in The Glasshouse project at 45-61 Waterloo Road, Macquarie Park, Sydney for $165.7 million.
Practical completion of construction occurred on 18 March 2020 with completion under the contract of sale to occur on 3 April 2020.
The 35,000sqm office building is substantially pre-committed to the NSW Government (70%) on a 12 year lease, with a three year rental guarantee over the top two floors provided by the John Holland over the remaining space. Charter Hall acquired the asset on a passing yield of 5.0%.
John Holland have a further 4 buildings which can be built on the site, ranging in size from 15,750sqm GFA up to 26,833sqm. The first building has been built to an ‘A’ Grade specification and an As-built targeted 5 Star Green Star rating. It incorporates augmented energy efficient smart technology and state of the art End of Trip facilities.
Fund Manager of CLW, Avi Anger commented “We are pleased that construction of The Glasshouse at Macquarie Park has completed on program. This A-Grade office building features a 12 year lease to the NSW Government, representing approximately 70% (by net income), with a three year rental guarantee provided by the vendor over the remaining space. The building, a high quality addition to the CLW portfolio, is projected to achieve a 5 star NABERS rating and 5 Star Green Star Design and As Built ratings. The strategic focus on quality income across our portfolio is further enhanced, with government related entities collectively remaining our largest tenant.”
Funding required for completion of the transaction will be funded from existing debt facilities.
Charter hall took the opportunity to advise the market that based on current information it reaffirmed the guidance of 28.3 cents Operating EPS for FY20 provided to the market on 10 February 2020.
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