The sell off of the Investa Office Fund by Oxford continues with the sale of 18 Mort Street Canberra to Charter Hall who are in the final stages of due diligence on the asset. Charter Hall are set to pay approx $105M for the A grade 14,506sqm commercial building which is fully leased by Telstra with a 6.7 year lease expiry. The sale at $105M will reflect a cap rate of 5.85% and a capital value of $7,238/sqm of NLA. It is expected that Charter Hall’s Long WALE REIT will be the purchaser. The REIT aims to give investors stable income and capital growth through exposure to a portfolio of properties with a strong tenant profile and long lease expires. Investa acquired the asset in 2011 when it acquired the ING Office Fund. The sitting tenant vacated the asset in 2012 and Investa elected to spend $18M in a comprehensive refurbishment to improve it to an A Grade building with a NABERS rating of 4.5 stars. The strategy attracted Telstra who stepped in to lease the whole building for a 12 year term. Cushman & Wakefield acted for Investa. #Investa
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