Charter Hall Buys Perth Office, Mall for A$458 Million

Charter Hall Group, which owns and manages Australian commercial properties, said its unlisted office fund and two partners will buy an office building and mall in Perth for A$458 million ($435 million).

The acquisition in Perth’s center includes an office building leased to the Bank of Western Australia Ltd. and the Raine Square shopping center, anchored by a lease to Wesfarmers Ltd.-owned Coles supermarket, the Sydney-based company said in a regulatory filing today. The shares had the biggest gain in more than three years.

“The acquisition is in line with our strategy of raising and deploying capital into core real estate investments,” David Harrison, joint-managing director of Charter Hall, said in the statement. “Despite the slowdown in the resource sector, we are confident about the longer-term outlook for Perth and are attracted to the security of a non-resource tenant of Bankwest’s caliber.”

Charter Hall’s Core Plus Office Fund has partnered with a domestic pension fund and a global institutional partner to purchase the property from the receivers of Westgem Investments Pty, according to the statement, which didn’t identify the partners. The property has a combined lettable space of 61,564 square meters (662,669 square feet).

Charter Hall, which didn’t invest in the properties, will manage them, it said. The acquisition won’t affect the company’s earnings in the year ending June 30, and will add to income in fiscal year 2014, it said.

Shares of Charter Hall surged 6.6 percent to A$3.89 at the close of trading in Sydney, the biggest jump since February 2010. They have risen 19 percent this year, compared with a 4.6 percent increase in the benchmark S&P/ASX 200 Index.

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