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Charter Hall Group (ASX:CHC) signs tenant for Collins Street

Commercial, Real Estate
ASX:CHC      MCAP $5.557B
09 December 2020 16:15 (AEST)

Source: Commercial Real Estate

Charter Hall Group (CHC) has a new anchor tenant for its new $750 million dollar building in Melbourne.

CHC has not given any names as to who is moving in, but it has hinted its a leading global technology company.

The new customers were secured by CHC’s flagship office fund, Charter Hall Prime Office Fund (CPOF).

The new building is located on 555 Collins Street and will consist of two towers of office space.

Construction on the first building will now begin as the demolishing of the old building has been completed.

“This major pre-commitment provides the momentum for CPOF to proceed with construction and advance further leasing interest during the development phase,” Managing Director and Group CEO David Harrison said.

“555 Collins Street is a visionary commercial precinct that will create a new benchmark for office development in Australia. We expect a flight to high-quality modern office buildings as tenant customers refine their workplace to meet the changing appetite for modern, technology and health/hygiene driven accommodation requirements,” he added.

Victoria’s Treasurer, Tim Pallas, believes projects like Collins Street would drive economic activity in the inner-city.

“This is exactly what Melbourne’s CBD – and our economy – needs right now: a project that will bring to life this end of town and create hundreds of construction jobs,” he said.

“Victoria was the strongest economy in the country before the pandemic and with investments like these in the pipeline, we’re confident we’ll come back even better and stronger,” he added.

On market close, Charter Hall is down 0.42 per cent and is trading for $14.20 per share.

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