3 May 2016
Charter Hall and Barristers Chambers Limited (BCL) have today announced an extension to BCL’s lease at 200 Queen Street in Melbourne’s legal precinct that includes an innovative new approach to the traditional landlord tenant relationship.
The extension sees BCL commit to a new five year lease across approximately 6,900sqm of the Charter Hall Direct Office Fund (DOF) owned building, representing 35% of the building’s net lettable area and maintaining the building’s occupancy at 100%.
Importantly, the new lease arrangement not only provides the security of a lease until 2027 for DOF investors, but this long term tenure enables BCL to deliver a number of improvements in facilities management for its barrister clients and invest in a suite of new and innovative practice support services. BCL owns and leases buildings conveniently located near the principal court complexes in Melbourne which it rents to barristers as professional chambers.
The extended lease and innovative approach adopted by BCL and Charter Hall reflects a strong relationship built over time which has led to a deep commitment by senior management of both companies to explore innovative opportunities for creating mutual value.
DOF fund manager, Steven Bennett, said: “We are delighted to continue to build on our 20 year relationship with BCL. The strong partnership between our organisations allows us to work in collaboration to create tailored accommodation solutions that provide a competitive advantage to BCL to attract and retain the best legal talent.”
Since BCL first became a tenant in the property in 1993, the two parties have worked closely together to ensure the building provides high quality tailored services to meet the needs of individual tenants.
BCL CEO Gary Brinkworth said: “This unique commercial partnership with Charter Hall allows us to innovate to meet the changing needs of our barrister clients and move beyond the traditional landlord and tenant relationship”.
In addition to the high quality and central location of the building, Charter Hall has been pro-active in maintaining building quality including end of trip facilities, ground floor lobby refurbishments and lift refurbishment.
DOF, which invests in a high quality, long leased Australian office portfolio is open to investment with an income yield of 6.6% pa1 and a minimum investment of $20,000.
Notes: 1. DOF’s forecast annualised yield is for the period to 30 June 2017 and assumes $1.1418 unit price as at 4 January 2016. Obtain current unit pricing at www.charterhalldirect.com.au/dof
About Charter Hall
Charter Hall Group (ASX:CHC) is one of Australia’s leading fully integrated property groups, with over 24 years’ experience managing high quality property on behalf of institutional, wholesale and retail clients. Charter Hall has over $15.9 billion of funds under management across the office, retail and industrial sectors. The Group has offices in Sydney, Melbourne, Brisbane, Adelaide and Perth.
The Group’s success is underpinned by a highly skilled and motivated team with diverse expertise across property sectors and risk-return profiles. Sustainability is a key element of its business approach and by ensuring its actions are commercially sound and make a difference to its people, customers and the environment, Charter Hall can make a positive impact for its investors, the community and the Group.
More information on the funds is available on: https://www.charterhall.com.au/funds
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