SINGAPORE (EDGEPROP) - CapitaLand Investment (CLI) has acquired a freehold office in Melbourne’s CBD for its regional core-plus fund, CapitaLand Open End Real Estate Fund (COREF). According to a report by The Australian Financial Review, the building was sold for just over A$320 million ($317 million). CLI purchased the fund from CBRE Investment Management, which acquired the building in 2017 for A$250 million.

This marks COREF’s first acquisition in Australia and its fourth in Asia Pacific, with total investment amounting to approximately US$900 million ($1.24 billion) since the fund’s establishment in August last year.

The 22-storey office building is located at 120 Spencer Street, opposite the Southern Cross train station. It has a net lettable area of 344,445 sq ft and currently has committed office occupancy of 97.5%, with a weighted average lease expiry of 6.7 years. Its tenant base includes WeWork and Central Queensland University.

Over the past five years, the property has undergone A$30 million of upgrading including the recent installation of energy-efficient mechanical and engineering equipment. Since last November, the building has operated fully on green electricity.

Paul Toussaint, CLI’s managing director for Australia, says the country is one of CLI’s focus markets, with significant potential for growth. “CLI has invested about A$1.5 billion in five quality assets in the country held through its private and listed funds in the past six months,” he says.

Kevin Chee, CLI’s managing director, private funds, adds that COREF’s entry into Australia is in line with its strategy of building geographic exposure to institutional-grade, income-producing assets across developed markets in Asia Pacific.