Charter Hall-led consortium buys David Jones' flagship Sydney CBD store for $510 mil

By Valerie Kor / EdgeProp Singapore | December 23, 2020 6:00 AM SGT
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SINGAPORE (EDGEPROP) - A consortium of funds and partnerships managed by Australian property group Charter Hall Group has exchanged contracts to purchase 86 to 108 Castlereagh Street in Sydney for a purchase price of $510 million. The price reflects a 5% initial yield based on the initial annual net rent of $25.5 million.
The building has 12 floors and stands on a prime retail site spanning 37,997 sq ft in Sydney’s CBD. It overlooks Hyde Park and enjoys views of Sydney Harbour. Currently, it is home to Australian department store David Jones’ flagship Elizabeth Street store. The consortium acquired the property on a sale and leaseback transaction with David Jones, which will provide a 20-year, triple-net lease with a minimum 2.5% per annum annual rent increases. There is also an agreed turnover rent linked to sales performance.
The consortium comprises a 50% interest held by the Charter Hall Long WALE REIT, a 25% interest held by the Charter Hall DVP Partnership (DVP) and 25% held by Charter Hall Group.
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