Southern Cross Towers
01 The Deal
|Address||Southern Cross Towers, 121 Exhibition Street (East Tower) and 111 Bourke Street (West Tower), Melbourne, Australia|
|Seller||Brookfield & Blackstone|
|Buyer||Charter Hall Prime Office Fund|
|Deal Structure||50% interest|
02 The Challenge
Whilst the capital markets were still favourable during the early stages of the campaign, sentiment deteriorated as the outlook for funding costs increased throughout February and March 2022. Further softening of the global financial environment posed additional challenges for the bidding stages.
03 The Solution
04 The Result
Charter Hall Prime Office Fund (CPOF) ultimately executed on the acquisition of a 50% interest in the towers for $1.025Bn.
Charter Hall Office CEO Carmel Hourigan said: “The acquisition of Southern Cross Towers demonstrates the success of Charter Hall’s strategy — to expand our office footprint and offer best-in-class workplaces experiences. With a site area of almost 9,000 sqm, the scale of the Southern Cross precinct complements CPOF’s portfolio of other large-scale assets including the Wesley precinct and 555 Collins Street in Melbourne CBD, together with Sydney’s iconic Chifley Square.”
“We will work with Brookfield to re-lease the West Tower upon relocation of Australia Post in 2025 and look to further enhance the amenity offered by the complex,” said Ms Hourigan.
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